Back to top

Image: Bigstock

Ternium S.A. (TX) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Ternium S.A. (TX - Free Report) closed the most recent trading day at $40.68, moving -1.55% from the previous trading session. This move lagged the S&P 500's daily loss of 0.86%.

Prior to today's trading, shares of the company had gained 10.9% over the past month. This has outpaced the Basic Materials sector's loss of 2.89% and the S&P 500's gain of 3.22% in that time.

TX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.56, up 3460% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.61 billion, up 107.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.51 per share and revenue of $13.84 billion. These totals would mark changes of +314.24% and +58.43%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.84% higher. TX is currently a Zacks Rank #2 (Buy).

In terms of valuation, TX is currently trading at a Forward P/E ratio of 3.3. This valuation marks a discount compared to its industry's average Forward P/E of 6.16.

We can also see that TX currently has a PEG ratio of 0.2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Steel - Producers industry currently had an average PEG ratio of 0.28 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% 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.

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

In-Depth Zacks Research for the Tickers Above

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

Ternium S.A. (TX) - free report >>

Published in