Why Cleveland-Cliffs (CLF) Outpaced the Stock Market Today

In the latest close session, Cleveland-Cliffs (CLF) was up +2.49% at $8.02. The stock's performance was ahead of the S&P 500's daily gain of 1.15%. Elsewhere, the Dow saw an upswing of 1.38%, while the tech-heavy Nasdaq appreciated by 1.38%.

The stock of mining company has fallen by 26.57% in the past month, lagging the Basic Materials sector's loss of 16.03% and the S&P 500's loss of 5.69%.

Market participants will be closely following the financial results of Cleveland-Cliffs in its upcoming release. In that report, analysts expect Cleveland-Cliffs to post earnings of -$0.34 per share. This would mark year-over-year growth of 63.04%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.93 billion, indicating a 6.42% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.44 per share and a revenue of $20.35 billion, signifying shifts of +82.26% and +9.36%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Cleveland-Cliffs. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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 3.36% lower. Cleveland-Cliffs is currently sporting a Zacks Rank of #4 (Sell).

The Steel - Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 215, positioning it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CLF in the coming trading sessions, be sure to utilize Zacks.com.

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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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