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Cleveland-Cliffs (CLF) Stock Moves -1.3%: What You Should Know

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In the latest trading session, Cleveland-Cliffs (CLF - Free Report) closed at $11.40, marking a -1.3% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.73%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 2.55%.

The the stock of mining company has fallen by 13.42% in the past month, lagging the Basic Materials sector's gain of 2.14% and the S&P 500's gain of 6.22%.

The investment community will be closely monitoring the performance of Cleveland-Cliffs in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.14, signifying a 125.93% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.89 billion, down 12.84% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.04 per share and a revenue of $20.19 billion, representing changes of -96.26% and -8.19%, respectively, from the prior year.

Any recent changes to analyst estimates for Cleveland-Cliffs should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 73.86% lower. Cleveland-Cliffs currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Cleveland-Cliffs has a Forward P/E ratio of 301.3 right now. For comparison, its industry has an average Forward P/E of 13.95, which means Cleveland-Cliffs is trading at a premium to the group.

We can also see that CLF currently has a PEG ratio of 6.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Mining - Miscellaneous industry currently had an average PEG ratio of 2.2 as of yesterday's close.

The Mining - Miscellaneous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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