In the latest trading session, Ternium S.A. (TX) closed at $36.30, marking a +0.78% move from the previous day. This move outpaced the S&P 500's daily gain of 0.33%.
Coming into today, shares of the company had lost 2.54% in the past month. In that same time, the Basic Materials sector lost 3.78%, while the S&P 500 gained 1.74%.
Wall Street will be looking for positivity from TX as it approaches its next earnings report date. In that report, analysts expect TX to post earnings of $3.42 per share. This would mark year-over-year growth of 3320%. Meanwhile, our latest consensus estimate is calling for revenue of $3.61 billion, up 107.01% from the prior-year quarter.
TX's full-year Zacks Consensus Estimates are calling for earnings of $11.82 per share and revenue of $13.84 billion. These results would represent year-over-year changes of +291.39% and +58.43%, respectively.
It is also important to note the recent changes to analyst estimates for TX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TX is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that TX has a Forward P/E ratio of 3.05 right now. This valuation marks a discount compared to its industry's average Forward P/E of 6.59.
Also, we should mention that TX has a PEG ratio of 0.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Steel - Producers stocks are, on average, holding a PEG ratio of 0.33 based on yesterday's closing prices.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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