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Here's Why Cleveland-Cliffs (CLF) Fell More Than Broader Market

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In the latest close session, Cleveland-Cliffs (CLF - Free Report) was down 1.3% at $11.74. This change lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Heading into today, shares of the mining company had gained 12.38% over the past month, outpacing the Basic Materials sector's gain of 6.19% and the S&P 500's gain of 2.71%.

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 -$0.43 per share. This would mark a year-over-year decline of 30.3%. Simultaneously, our latest consensus estimate expects the revenue to be $4.92 billion, showing a 7.59% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of -$2.07 per share and a revenue of $19.31 billion, demonstrating changes of -183.56% and +0.65%, respectively, from the preceding year.

Investors should also note any recent changes 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.09% downward. Cleveland-Cliffs is holding a Zacks Rank of #3 (Hold) right now.

The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 21% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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