Cleveland-Cliffs (CLF) Stock Drops Despite Market Gains: Important Facts to Note

Company Overview - Cleveland-Cliffs (CLF) closed at $20.47, reflecting a -0.29% change from the previous day, underperforming the S&P 500's gain of 1.12% [1] - Over the past month, CLF shares increased by 4.91%, which is below the Basic Materials sector's gain of 5.41% but above the S&P 500's gain of 2.06% [1] Earnings Projections - The upcoming earnings release is anticipated to show earnings of$ 0.34 per share, indicating a year-over-year growth of 409.09% [1] - Revenue is projected to be $5.29 billion, reflecting a 0.14% decline compared to the same quarter last year [1] - Full-year estimates predict earnings of$ 2.05 per share and revenue of $21.57 billion, representing year-over-year changes of +91.59% and -1.95%, respectively [2] Analyst Estimates and Stock Performance - Recent modifications to analyst estimates indicate changing business trends, with positive revisions suggesting optimism about the company's profitability [2] - The Zacks Consensus EPS estimate has decreased by 8.42% in the past month, and CLF currently holds a Zacks Rank of 3 (Hold) [3] Valuation Metrics - Cleveland-Cliffs has a Forward P/E ratio of 10.03, which is lower than the industry average of 16.58, indicating it is trading at a discount [3] - The company has a PEG ratio of 0.64, significantly below the Mining - Miscellaneous industry's average PEG ratio of 3.19 [3] Industry Context - The Mining - Miscellaneous industry is part of the Basic Materials sector and currently holds a Zacks Industry Rank of 160, placing it in the bottom 37% of all industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]