Cleveland-Cliffs (CLF) Surpasses Market Returns: Some Facts Worth Knowing

The latest trading session saw Cleveland-Cliffs (CLF) ending at $21.20, denoting a +1.15% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 1.25%.

The mining company's stock has climbed by 7.05% in the past month, exceeding the Basic Materials sector's gain of 4.26% and the S&P 500's gain of 3.56%.

The investment community will be closely monitoring the performance of Cleveland-Cliffs in its forthcoming earnings report. In that report, analysts expect Cleveland-Cliffs to post earnings of $0.31 per share. This would mark year-over-year growth of 381.82%. At the same time, our most recent consensus estimate is projecting a revenue of $5.27 billion, reflecting a 0.39% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.95 per share and revenue of $21.42 billion. These totals would mark changes of +82.24% and -2.64%, respectively, from last year.

Any recent changes to analyst estimates for Cleveland-Cliffs should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.69% decrease. Cleveland-Cliffs currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Cleveland-Cliffs currently has a Forward P/E ratio of 10.75. For comparison, its industry has an average Forward P/E of 16.66, which means Cleveland-Cliffs is trading at a discount to the group.

We can also see that CLF currently has a PEG ratio of 0.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Mining - Miscellaneous industry stood at 2.87 at the close of the market yesterday.

The Mining - Miscellaneous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 173, positioning it in the bottom 32% of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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