Back to top

Image: Bigstock

Cleveland-Cliffs (CLF) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Cleveland-Cliffs (CLF - Free Report) closed the most recent trading day at $12.16, moving -0.49% from the previous trading session. The stock lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.51%.

Prior to today's trading, shares of the mining company had gained 27.29% over the past month. This has outpaced the Basic Materials sector's gain of 3.19% and the S&P 500's gain of 2.79% in that time.

CLF will be looking to display strength as it nears its next earnings release, which is expected to be October 19, 2018. The company is expected to report EPS of $0.69, up 91.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $725.90 million, up 3.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.74 per share and revenue of $2.42 billion, which would represent changes of +248% and +3.69%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CLF. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CLF currently has a Zacks Rank of #3 (Hold).

In terms of valuation, CLF is currently trading at a Forward P/E ratio of 7.01. This valuation marks a discount compared to its industry's average Forward P/E of 12.18.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much 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 >>