Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits through trending stocks [1] Group 1: Momentum Investing Characteristics - Fast-moving stocks can lose momentum if their growth potential does not justify high valuations, leading to limited upside or potential downside for investors [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [3] Group 2: Ternium S.A. (TX) Analysis - Ternium S.A. (TX) has shown a four-week price change of 4.8%, indicating growing investor interest [4] - Over the past 12 weeks, TX has gained 14.3%, with a beta of 1.36, suggesting it moves 36% more than the market [5] - TX has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - TX has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.51, indicating it is undervalued at 51 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides TX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Sonoco Products Co (NYSE:SON) - Dividend yield is 4.65% [6] - Analyst George Staphos from B of A Securities upgraded the stock from Neutral to Buy, raising the price target from $56 to $60 [6] - Analyst Gabe Hajde from Wells Fargo maintained an Overweight rating and increased the price target from $50 to $52 [6] - Recent news includes the completion of the sale of ThermoSafe unit to Arsenal Capital Partners on Nov. 3 [6] Group 2: Eastman Chemical Co (NYSE:EMN) - Dividend yield is 5.19% [6] - Analyst Michael Sison from Wells Fargo downgraded the stock from Overweight to Equal-Weight with a price target of $70 [6] - Analyst Patrick Cunningham from Citigroup maintained a Buy rating and raised the price target from $70 to $72 [6] - Recent news indicates that Eastman Chemical posted downbeat quarterly results on Nov. 3 [6] Group 3: Ternium SA (NYSE:TX) - Dividend yield is 6.94% [6] - Analyst Alfonso Salazar from Scotiabank maintained a Sector Outperform rating but cut the price target from $41 to $40 [6] - Analyst Timna Tanners from Wells Fargo initiated coverage with an Underweight rating and a price target of $30 [6] - Recent news shows that Ternium posted mixed quarterly results on Oct. 28 [6]

Core Viewpoint - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends to shareholders [1] Group 1: Sonoco Products Co (NYSE:SON) - Dividend yield is 4.65% [6] - Analyst George Staphos from B of A Securities upgraded the stock from Neutral to Buy, raising the price target from $56 to $60 [6] - Analyst Gabe Hajde from Wells Fargo maintained an Overweight rating and increased the price target from $50 to $52 [6] - Recent news includes the completion of the sale of ThermoSafe unit to Arsenal Capital Partners on Nov. 3 [6] Group 2: Eastman Chemical Co (NYSE:EMN) - Dividend yield is 5.19% [6] - Analyst Michael Sison from Wells Fargo downgraded the stock from Overweight to Equal-Weight with a price target of $70 [6] - Analyst Patrick Cunningham from Citigroup maintained a Buy rating and raised the price target from $70 to $72 [6] - Recent news indicates that Eastman Chemical posted downbeat quarterly results on Nov. 3 [6] Group 3: Ternium SA (NYSE:TX) - Dividend yield is 6.94% [6] - Analyst Alfonso Salazar from Scotiabank maintained a Sector Outperform rating but cut the price target from $41 to $40 [6] - Analyst Timna Tanners from Wells Fargo initiated coverage with an Underweight rating and a price target of $30 [6] - Recent news shows that Ternium posted mixed quarterly results on Oct. 28 [6]

Core Insights - Ternium, a prominent Mexican steel producer, has faced significant challenges over the past year due to trade-related issues in Mexico and Brazil, which is a key secondary market for the company [1] Group 1: Company Performance - The company has been adversely affected by trade disputes, impacting its operational performance and market position [1] Group 2: Market Context - The trade-related issues in both its home country and Brazil have created a difficult environment for Ternium, highlighting the vulnerabilities in the steel industry [1]

Core Insights - Ternium S.A. announced a significant development regarding its subsidiary Ternium Investments S. [1] Group 1 - The announcement was made on November 5, 2025, indicating a strategic move by the company [1]

Financial Data and Key Metrics Changes - In Q3 2025, Ternium reported an increase in EBITDA driven by a decreasing cost per ton, with cash generation exceeding half a billion dollars during the quarter [5][13] - The net result for Q3 2025 was a loss of $270 million, primarily due to a $405 million non-cash loss related to the write-down of deferred tax assets at Usiminas [13][14] - Adjusted EBITDA is expected to decline slightly in Q4 2025 due to seasonal slowdowns, but adjusted EBITDA margin should remain consistent with the previous quarter [13][40] Business Line Data and Key Metrics Changes - Steel segment shipments increased, particularly in Mexico and Brazil, although lower volumes were noted in other markets [16][17] - The mining segment experienced a decline in net sales due to lower iron ore shipments and increased costs per ton in one of the Mexican operations [18] Market Data and Key Metrics Changes - In Mexico, steel demand has been significantly impacted by U.S. trade policies, with apparent consumption expected to decrease by 10% in 2025 [8][46] - Brazil's steel environment remains healthy with a projected 5% growth in apparent steel demand in 2025, despite challenges from unfairly traded imports [9][10] Company Strategy and Development Direction - Ternium is focused on strengthening its market position through ongoing optimization and cost reductions, particularly in response to the evolving global trade environment [11][12] - The company supports policies that promote regional integration and fair competition within the USMCA framework [6][9] Management's Comments on Operating Environment and Future Outlook - Management highlighted the uncertainty in the business environment due to ongoing changes in U.S. tariff frameworks and emphasized the importance of the USMCA [5][6] - There is optimism regarding potential structural reforms in Argentina that could enhance competitiveness and growth opportunities in the steel industry [10][46] Other Important Information - Ternium's board declared an interim dividend of $0.90 per ADS, maintaining the same payment level as the previous year [5][20] - The company received the Steel Award for Excellence in Sustainability for its renewable energy initiative in Argentina [11] Q&A Session Summary Question: What strategic opportunities arise from the recent elections in Argentina? - Management indicated that the elections may lead to structural reforms that could enhance competitiveness in the industry, but current ownership structure simplification is not a priority [22][23] Question: What is Ternium's plan if the U.S. maintains melt and pour conditions for steel products? - The company plans to continue with its investment strategy, focusing on increasing production capacity to meet regional demands [27][28] Question: What is the cash cost outlook for Q4? - Management expects further improvements in cash costs across operations, with a slight decrease in prices anticipated in Mexico and Argentina [35][40] Question: What is the outlook for demand in Mexico for 2026? - Demand is expected to recover by 4% in 2026, driven by infrastructure growth and stabilization in trade relations with the U.S. [46][48] Question: What is the status of the Pesquería project? - The new galvanized line is set to start production in December, with the overall project on track and within budget [68] Question: What are the expectations for EBITDA per ton in 2026? - Management aims for an EBITDA margin of around 10% entering 2026, with ongoing efforts to improve margins despite uncertainties in trade negotiations [74][79]

Financial Data and Key Metrics Changes - In Q3 2025, Ternium reported an increase in EBITDA driven by a decreasing cost per tonne, with cash generation exceeding half a billion dollars during the quarter [5][13] - The net result for Q3 2025 was a loss of $270 million, primarily due to a $405 million non-cash loss related to the write-down of deferred tax assets at Usiminas [13][14] - Adjusted EBITDA is expected to decline slightly in Q4 2025 due to seasonal slowdowns, but adjusted EBITDA margin should remain consistent with the previous quarter [13][40] Business Line Data and Key Metrics Changes - Steel segment shipments increased, particularly in Mexico and Brazil, although lower volumes were noted in other markets [16][17] - The mining segment experienced a decline in net sales due to lower iron ore shipments and increased costs per tonne in one of the Mexican operations [18] Market Data and Key Metrics Changes - In Mexico, steel demand has been impacted by uncertainty from U.S. trade policies, with a projected 10% decrease in apparent consumption for 2025 [8][48] - Brazil's steel environment remains healthy with an expected 5% growth in apparent steel demand in 2025, despite facing challenges from unfairly traded imports [9][10] - Argentina's steel activity leveled off due to pre-election uncertainty, but there is optimism for growth following the elections [10][11] Company Strategy and Development Direction - Ternium is focused on strengthening its market position through ongoing optimization and cost reductions, particularly in response to trade volatility and competition from Asian countries [11][12] - The company supports policies aimed at increasing local value addition and reducing reliance on imports, particularly in Mexico [9][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the USMCA framework and ongoing trade negotiations to ensure fair competition and long-term growth in the region [6][7] - The Mexican government is prioritizing efforts to fortify local value chains and promote self-sufficiency against external pressures [8][9] - Management expressed optimism about potential structural reforms in Argentina that could enhance competitiveness in the steel industry [10][11] Other Important Information - Ternium received the Steel Award for Excellence in Sustainability for its renewable energy initiative in Argentina, which significantly reduces its environmental footprint [11] - The board declared an interim dividend of $0.90 per ADS, maintaining the same level as the previous year [5][20] Q&A Session Summary Question: Strategic opportunities post-Argentina elections - Management indicated that the elections would not change existing projects and expressed optimism for structural reforms that could enhance competitiveness in Argentina [22][23] Question: Conditions for restructuring ownership - Management noted that restructuring depends on external factors, particularly the share held by ANSES, and emphasized the need for government reforms before considering such initiatives [24][25] Question: Plans if U.S. maintains melt and pour conditions - Management confirmed that they would continue with existing investment plans, anticipating increased production capacity in response to market conditions [27][29] Question: Cash cost outlook for Q4 - Management expects ongoing efficiencies to improve cash costs across operations in Mexico, Argentina, and Usiminas, despite slight price decreases [37][41] Question: Demand outlook for Mexico in 2026 - Management projected a recovery in demand for 2026, driven by infrastructure growth and stabilization in U.S.-Mexico trade relations [48][50] Question: Update on Compactos project - Management stated that decisions regarding the Compactos project would be made in mid-2026, with ongoing analysis of various alternatives [78][80] Question: Expectations for EBITDA per ton in 2026 - Management indicated that while they aim for an EBITDA margin of around 10% entering 2026, achieving this will depend on various market conditions and trade negotiations [76][82]

Financial Data and Key Metrics Changes - In Q3 2025, Ternium reported an increase in EBITDA driven by a decreasing cost per tonne, with cash generation exceeding half a billion dollars during the quarter [4][11] - The net result for Q3 2025 was a loss of $270 million, primarily due to a $405 million non-cash loss related to the write-down of deferred tax assets at Usiminas [11][12] - Adjusted EBITDA is expected to decline slightly in Q4 2025 due to seasonal slowdown, but the adjusted EBITDA margin is projected to remain consistent with the previous quarter [11][38] Business Line Data and Key Metrics Changes - Steel segment shipments increased, particularly in Mexico and Brazil, although lower volumes were noted in other markets [13][14] - The mining segment experienced a decline in net sales due to lower iron ore shipments and increased costs in one of the Mexican operations [15] Market Data and Key Metrics Changes - In Mexico, apparent steel consumption is projected to decrease by 10% in 2025, with expectations of a 4% recovery in 2026 driven by infrastructure growth [48] - Brazil's steel environment remains healthy with a 5% growth expectation in apparent steel demand for 2025, despite challenges from unfairly traded imports [8][14] Company Strategy and Development Direction - Ternium is focused on strengthening its market position through ongoing optimization and cost reductions, particularly in response to the evolving global trade environment [9][10] - The company supports policies that promote regional integration and fair competition within the USMCA framework [5][6] Management's Comments on Operating Environment and Future Outlook - Management highlighted the uncertainty in the business environment due to ongoing changes in the U.S. tariff framework, but expressed optimism about structural reforms in Argentina following the recent elections [5][22] - The company anticipates a slight decline in prices in Mexico and Argentina for Q4 2025, but expects stability in North American prices [38][42] Other Important Information - Ternium's board declared an interim dividend of $0.90 per ADS, maintaining the same level as last year [4][17] - The company received the Steel Award for Excellence in Sustainability for its renewable energy initiative in Argentina [9] Q&A Session Summary Question: Strategic opportunities post-Argentina elections - Management indicated that the elections would lead to structural reforms that could enhance competitiveness in Argentina, but no immediate changes to ownership structure are planned [21][23] Question: Ternium's plan if U.S. maintains melt and pour conditions - The company plans to continue with its investment strategy, anticipating that melt and pour conditions will remain relevant, especially in the automotive sector [27][29] Question: Cash cost outlook for Q4 - Management expects ongoing efficiencies in operations, with a slight decrease in cash costs anticipated in Mexico and Argentina [35][42] Question: Demand outlook for Mexico in 2026 - A recovery in demand is expected in 2026, driven by infrastructure growth and stabilization in trade between the U.S. and Mexico [48][50] Question: Update on the Pesquería project - The new galvanized line is set to start production in December, with the overall project on budget and timeline [72][74] Question: Expectations for EBITDA per ton in 2026 - Management aims for an EBITDA margin of around 10% entering 2026, with ongoing efforts to improve margins despite uncertainties in trade negotiations [84][85]

Core Insights - Ternium S.A. reported a revenue of $3.96 billion for Q3 2025, reflecting an 11.7% year-over-year decline and an EPS of $0.10, down from $0.16 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $3.99 billion by 0.79%, while the EPS was significantly below the consensus estimate of $0.78, resulting in an EPS surprise of -87.18% [1] Financial Performance Metrics - Ternium's stock has returned +8.5% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3] Steel Segment Analysis - Total steel product shipments were reported at 3,757 K Ton, below the average estimate of 3,884.72 K Ton [4] - Shipments in Mexico were 1,849 K Ton, compared to the estimated 1,941.65 K Ton [4] - Shipments in Brazil were 994 K Ton, against the average estimate of 1,024.70 K Ton [4] - Revenue per ton for total steel products was $992, lower than the estimated $1,008.80 [4] - Net sales for the total steel segment were $3.8 billion, below the estimated $3.96 billion [4] - Net sales in Mexico were $1.8 billion, compared to the estimated $1.95 billion [4] - Net sales in Brazil were reported at $950 million, slightly above the average estimate of $943.17 million [4]

Financial Performance - In Q3 2025, Ternium reported steel product shipments of 3.8 million tons, a 1% increase from Q2 2025 but a 9% decrease year-over-year[6]. - Adjusted EBITDA for Q3 2025 was $420 million, reflecting a 4% increase from Q2 2025 and a 14% increase year-over-year, with an adjusted EBITDA margin of 11%[6][7]. - The company experienced a net loss of $270 million in Q3 2025, which included a $405 million non-cash charge related to deferred tax assets and a $32 million loss from ongoing litigation[4][8]. - The company reported earnings per ADS of $0.10 in Q3 2025, down from $1.10 in Q2 2025[56]. - The company experienced a net loss of $(270) million in 3Q25, compared to a net income of $259 million in 2Q25 and $93 million in 3Q24[74]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $535 million, while capital expenditures (CAPEX) totaled $711 million in Q3 2025[4]. - Cash from operations in Q3 2025 amounted to $535 million, with a working capital decrease of $174 million[58]. - Free cash flow for 3Q25 was $(175) million, down from $234 million in 2Q25 and $(143) million in 3Q24[77]. - Capital expenditures in 3Q25 totaled $(711) million, compared to $(810) million in 2Q25 and $(446) million in 3Q24[77]. - The company’s total borrowings decreased to $(2.0) billion as of September 30, 2025, from $(2.4) billion as of June 30, 2025[78]. Segment Performance - The mining segment saw shipments of 2.0 million tons in Q3 2025, with an adjusted EBITDA margin of 11%[4][6]. - In Q3 2025, total net sales for the mining segment were $268 million, a decrease of 5% sequentially and an increase of 1% year-over-year[41]. - Cash operating income for the mining segment decreased sequentially and year-over-year, primarily due to lower margins and reduced sales volumes[42]. - Cash operating income for the steel segment was $391 million in 3Q25, with a cash operating income margin of 10%, up from 9% in 2Q25 and 7% in 3Q24[75]. - The mining segment reported a cash operating income of $38 million in 3Q25, with a cash operating income margin of 14%, down from 19% in 2Q25 and 20% in 3Q24[76]. Tax and Financial Results - Net financial results for Q3 2025 showed a loss of $35 million, including a $34 million loss in net foreign exchange results[49]. - Ternium's income tax expense in Q3 2025 totaled $444 million, which included a $405 million charge related to the write-down of deferred tax assets at Usiminas[52]. - The net result for Q3 2025 was a loss of $270 million, impacted by a $405 million write-down of deferred tax assets[54]. Dividends and Future Outlook - Ternium announced an interim dividend of $0.90 per ADS, totaling $177 million, with a projected total distribution of $2.70 per ADS for 2025, yielding approximately 7%[10][11]. - The company anticipates a slight decrease in Adjusted EBITDA for Q4 2025 due to seasonal shipment reductions, but expects the adjusted EBITDA margin to remain stable[13]. - In Brazil, Ternium is focusing on cost reduction initiatives to improve competitiveness amid challenges from unfairly traded steel imports[15]. - The outlook for Argentina is positive, with significant opportunities in agriculture, mining, and oil and gas sectors following the resolution of mid-term election uncertainties[16]. Overall Sales Performance - Total net sales for the first nine months of 2025 were $9,589 million, a 14% increase compared to $8,389 million in the same period of 2024[41]. - Changes in working capital resulted in a positive cash flow of $174 million in 3Q25, a significant decrease from $781 million in 2Q25[77]. - Ternium's net cash position decreased to $715 million by the end of September 2025, down $303 million from June 2025, due to cash demands from industrial expansion in Mexico[9]. - As of September 30, 2025, Ternium's net cash position was $715 million, a decrease of $303 million since June 2025[60].