Back to top

Image: Bigstock

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

Read MoreHide Full Article

Cleveland-Cliffs (CLF - Free Report) closed the most recent trading day at $22.37, moving +1.41% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.75%.

Coming into today, shares of the mining company had gained 10.3% in the past month. In that same time, the Basic Materials sector lost 6.8%, while the S&P 500 gained 2.91%.

CLF will be looking to display strength as it nears its next earnings release, which is expected to be July 22, 2021. On that day, CLF is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 574.19%. Meanwhile, our latest consensus estimate is calling for revenue of $4.98 billion, up 355.65% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.44 per share and revenue of $19.22 billion, which would represent changes of +2511.76% and +258.95%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CLF. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate has moved 16.46% higher within the past month. CLF is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, CLF is holding a Forward P/E ratio of 4.97. This represents a discount compared to its industry's average Forward P/E of 9.76.

Investors should also note that CLF has a PEG ratio of 0.23 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Miscellaneous industry currently had an average PEG ratio of 1.55 as of yesterday's close.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

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

ClevelandCliffs Inc. (CLF) - free report >>

Published in