Cleveland-Cliffs (CLF) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Cleveland-Cliffs (CLF) closed at $16.85, marking a -1.52% move from the previous day. This move lagged the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.54%.
Coming into today, shares of the mining company had lost 17.26% in the past month. In that same time, the Basic Materials sector lost 1.19%, while the S&P 500 lost 6.58%.
Investors will be hoping for strength from Cleveland-Cliffs as it approaches its next earnings release, which is expected to be February 11, 2022. The company is expected to report EPS of $2.03, up 745.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.42 billion, up 140.22% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Cleveland-Cliffs. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.14% higher. Cleveland-Cliffs is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Cleveland-Cliffs's current valuation metrics, including its Forward P/E ratio of 3.02. For comparison, its industry has an average Forward P/E of 9.91, which means Cleveland-Cliffs is trading at a discount to the group.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CLF in the coming trading sessions, be sure to utilize Zacks.com.
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