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

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In the latest close session, Cleveland-Cliffs (CLF - Free Report) was down 2.94% at $13.20. The stock's performance was behind the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.69%.

Heading into today, shares of the mining company had gained 10.66% over the past month, outpacing the Basic Materials sector's gain of 5.72% and the S&P 500's gain of 0.55%.

Investors will be eagerly watching for the performance of Cleveland-Cliffs in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.56, showcasing a 17.65% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.63 billion, reflecting a 6.99% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.4 per share and revenue of $18.92 billion. These totals would mark changes of -228.77% and 0%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Cleveland-Cliffs. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 42.1% increase. Cleveland-Cliffs presently features a Zacks Rank of #3 (Hold).

The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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