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Ternium S.A. (TX) closed the most recent trading day at $42.73, moving -0.72% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.16%.
Prior to today’s trading, shares of the company had lost 20.85% over the past month. This has lagged the Basic Materials sector’s loss of 7.91% and the S&P 500’s loss of 3.32% in that time.
TX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.62, up 657.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.1 billion, up 91.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.93 per share and revenue of $15.54 billion. These totals would mark changes of +460.6% and +77.91%, respectively, from last year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TX is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, TX is currently trading at a Forward P/E ratio of 2.54. This represents a discount compared to its industry’s average Forward P/E of 4.14.
We can also see that TX currently has a PEG ratio of 0.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Steel – Producers industry currently had an average PEG ratio of 0.17 as of yesterday’s close.
The Steel – Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ternium S.A. (TX): Free Stock Analysis Report
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