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Cleveland-Cliffs (CLF) Stock Slides as Market Rises: Facts to Know Before You Trade

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Cleveland-Cliffs (CLF - Free Report) ended the recent trading session at $15.07, demonstrating a -0.4% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.85%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 1.53%.

The the stock of mining company has fallen by 15% in the past month, lagging the Basic Materials sector's loss of 3.24% and the S&P 500's gain of 3.11%.

Investors will be eagerly watching for the performance of Cleveland-Cliffs in its upcoming earnings disclosure. On that day, Cleveland-Cliffs is projected to report earnings of $0.07 per share, which would represent a year-over-year decline of 89.86%. Simultaneously, our latest consensus estimate expects the revenue to be $5.32 billion, showing a 11.04% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.63 per share and revenue of $21.1 billion, which would represent changes of -41.12% and -4.09%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cleveland-Cliffs. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 41.12% fall in the Zacks Consensus EPS estimate. Cleveland-Cliffs is currently a Zacks Rank #4 (Sell).

With respect to valuation, Cleveland-Cliffs is currently being traded at a Forward P/E ratio of 24.02. Its industry sports an average Forward P/E of 16.02, so one might conclude that Cleveland-Cliffs is trading at a premium comparatively.

Investors should also note that CLF has a PEG ratio of 0.52 right now. 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. As of the close of trade yesterday, the Mining - Miscellaneous industry held an average PEG ratio of 3.19.

The Mining - Miscellaneous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 193, placing it within the bottom 24% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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