Cleveland-Cliffs (CLF) Declines More Than Market: Some Information for Investors

In the latest trading session, Cleveland-Cliffs (CLF) closed at $8.92, marking a -3.88% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.52%. On the other hand, the Dow registered a loss of 1.56%, and the technology-centric Nasdaq decreased by 1.78%.

Coming into today, shares of the mining company had lost 25.64% in the past month. In that same time, the Basic Materials sector lost 5.1%, while the S&P 500 lost 2.25%.

The upcoming earnings release of Cleveland-Cliffs will be of great interest to investors. The company is expected to report EPS of -$0.31, up 66.3% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.93 billion, showing a 6.45% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.38 per share and a revenue of $20.57 billion, indicating changes of +84.68% and +10.53%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Cleveland-Cliffs. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 145.79% lower. Cleveland-Cliffs is currently a Zacks Rank #4 (Sell).

The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 204, placing it within the bottom 17% of over 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.

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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Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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