In the latest trading session, Ternium S.A. (TX) closed at $21.77, marking a +1.44% move from the previous day. This move outpaced the S&P 500's daily gain of 0.17%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.11%.
Coming into today, shares of the company had lost 8.13% in the past month. In that same time, the Basic Materials sector lost 4.04%, while the S&P 500 gained 2.78%.
Wall Street will be looking for positivity from TX as it approaches its next earnings report date. This is expected to be February 18, 2020. On that day, TX is projected to report earnings of $0.34 per share, which would represent a year-over-year decline of 81.01%. Our most recent consensus estimate is calling for quarterly revenue of $2.26 billion, down 14.33% from the year-ago period.
It is also important to note the recent changes to analyst estimates for TX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team 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, 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. Within the past 30 days, our consensus EPS projection has moved 10.94% lower. TX currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TX currently has a Forward P/E ratio of 9.3. This valuation marks a discount compared to its industry's average Forward P/E of 12.17.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow TX in the coming trading sessions, be sure to utilize Zacks.com.