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

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Cleveland-Cliffs (CLF - Free Report) closed at $21.57 in the latest trading session, marking a +0.61% move from the prior day. This move outpaced the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.42%.

Prior to today's trading, shares of the mining company had gained 5.88% over the past month. This has outpaced the Basic Materials sector's gain of 4.7% and the S&P 500's gain of 2.67% in that time.

The upcoming earnings release of Cleveland-Cliffs will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.28, reflecting a 354.55% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $5.25 billion, indicating a 0.76% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.84 per share and a revenue of $21.42 billion, demonstrating changes of +71.96% and -2.64%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Cleveland-Cliffs. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 9.87% lower. Cleveland-Cliffs is currently a Zacks Rank #3 (Hold).

In terms of valuation, Cleveland-Cliffs is presently being traded at a Forward P/E ratio of 11.63. This expresses a discount compared to the average Forward P/E of 17.24 of its industry.

One should further note that CLF currently holds a PEG ratio of 0.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Mining - Miscellaneous was holding an average PEG ratio of 2.9 at yesterday's closing price.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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