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Ternium S.A. (TX) Stock Moves -0.25%: What You Should Know

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In the latest trading session, Ternium S.A. (TX - Free Report) closed at $47.89, marking a -0.25% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.47%.

Prior to today's trading, shares of the company had gained 29.09% over the past month. This has outpaced the Basic Materials sector's gain of 3.58% and the S&P 500's gain of 3.38% in that time.

TX will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2021. In that report, analysts expect TX to post earnings of $3.83 per share. This would mark year-over-year growth of 3730%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.77 billion, up 116.13% from the year-ago period.

TX's full-year Zacks Consensus Estimates are calling for earnings of $13.49 per share and revenue of $14.23 billion. These results would represent year-over-year changes of +346.69% and +62.9%, respectively.

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.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 14.13% higher. TX is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note TX's current valuation metrics, including its Forward P/E ratio of 3.56. Its industry sports an average Forward P/E of 6.01, so we one might conclude that TX is trading at a discount comparatively.

We can also see that TX currently has a PEG ratio of 0.22. 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. Steel - Producers stocks are, on average, holding a PEG ratio of 0.24 based on yesterday's closing prices.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 7, putting 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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