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

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In the latest trading session, Cleveland-Cliffs (CLF - Free Report) closed at $21.73, marking a -0.18% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.46%.

Coming into today, shares of the mining company had gained 8.2% in the past month. In that same time, the Basic Materials sector gained 6.43%, while the S&P 500 gained 4.56%.

Cleveland-Cliffs will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.22, up 825% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.42 billion, up 140.22% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Cleveland-Cliffs. Recent revisions tend to reflect the latest near-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.

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 0.6% higher. Cleveland-Cliffs is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Cleveland-Cliffs has a Forward P/E ratio of 3.79 right now. For comparison, its industry has an average Forward P/E of 10.78, which means Cleveland-Cliffs is trading at a discount to the group.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 29% 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.

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


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