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Ternium S.A. (TX) Gains But Lags Market: What You Should Know

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Ternium S.A. (TX - Free Report) closed the most recent trading day at $43.82, moving +1.48% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.52%.

Coming into today, shares of the company had gained 26.44% in the past month. In that same time, the Basic Materials sector gained 1.24%, while the S&P 500 gained 2.41%.

Investors will be hoping for strength from TX as it approaches its next earnings release, which is expected to be August 3, 2021. On that day, TX is projected to report earnings of $3.71 per share, which would represent year-over-year growth of 3610%. Meanwhile, our latest consensus estimate is calling for revenue of $3.61 billion, up 107.01% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.87 per share and revenue of $13.84 billion. These totals would mark changes of +326.16% and +58.43%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for TX. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 8.88% higher. TX is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, TX currently has a Forward P/E ratio of 3.36. This represents a discount compared to its industry's average Forward P/E of 6.06.

Also, we should mention that TX 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 0.27 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 8, which puts it in the top 4% 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.

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