Back to top

Image: Bigstock

Cleveland-Cliffs (CLF) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Cleveland-Cliffs (CLF - Free Report) closed at $15.71, marking a +0.51% move from the previous day. This change outpaced the S&P 500's 0.01% gain on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.67%.

Coming into today, shares of the mining company had gained 0.77% in the past month. In that same time, the Basic Materials sector lost 0.88%, while the S&P 500 lost 4.45%.

Cleveland-Cliffs will be looking to display strength as it nears its next earnings release. On that day, Cleveland-Cliffs is projected to report earnings of $0.47 per share, which would represent year-over-year growth of 62.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.48 billion, down 3.08% from the year-ago period.

CLF's full-year Zacks Consensus Estimates are calling for earnings of $1.30 per share and revenue of $21.92 billion. These results would represent year-over-year changes of -57.38% and -4.64%, respectively.

Any recent changes to analyst estimates for Cleveland-Cliffs should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.17% lower within the past month. Cleveland-Cliffs is currently a Zacks Rank #4 (Sell).

Looking at its valuation, Cleveland-Cliffs is holding a Forward P/E ratio of 11.99. For comparison, its industry has an average Forward P/E of 10.22, which means Cleveland-Cliffs is trading at a premium to the group.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cleveland-Cliffs Inc. (CLF) - free report >>

Published in