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Cleveland-Cliffs (CLF) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Cleveland-Cliffs (CLF - Free Report) closed at $15.65, marking a -0.19% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.4%, and the technology-centric Nasdaq increased by 0.58%.

Coming into today, shares of the mining company had gained 11.28% in the past month. In that same time, the Basic Materials sector lost 4.59%, while the S&P 500 lost 2.61%.

The upcoming earnings release of Cleveland-Cliffs will be of great interest to investors. The company's earnings report is expected on October 23, 2023. The company is predicted to post an EPS of $0.47, indicating a 62.07% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.48 billion, showing a 3.08% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.30 per share and revenue of $21.92 billion, which would represent changes of -57.38% and -4.64%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Cleveland-Cliffs. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 7.91% lower. Right now, Cleveland-Cliffs possesses a Zacks Rank of #4 (Sell).

Digging into valuation, Cleveland-Cliffs currently has a Forward P/E ratio of 12.02. This indicates a premium in contrast to its industry's Forward P/E of 10.04.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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