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Ternium S.A. (TX) Outpaces Stock Market Gains: What You Should Know

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Ternium S.A. (TX - Free Report) closed the most recent trading day at $43.42, moving +1.83% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.12%.

Coming into today, shares of the company had gained 18.67% in the past month. In that same time, the Basic Materials sector lost 1.88%, while the S&P 500 gained 3%.

Wall Street will be looking for positivity from TX as it approaches its next earnings report date. This is expected to be August 3, 2021. In that report, analysts expect TX to post earnings of $3.56 per share. This would mark year-over-year growth of 3460%. 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.

Any recent changes to analyst estimates for TX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection has moved 5.84% higher. TX is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note TX's current valuation metrics, including its Forward P/E ratio of 3.41. Its industry sports an average Forward P/E of 6.06, so we one might conclude that TX is trading at a discount comparatively.

It is also worth noting that TX currently has a PEG ratio of 0.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TX's industry 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 group has a Zacks Industry Rank of 13, putting it in the top 6% 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.

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