In the latest trading session, Ternium S.A. (TX) closed at $44.24, marking a +1.14% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.95%.
Prior to today’s trading, shares of the company had lost 20.46% over the past month. This has lagged the Basic Materials sector’s loss of 4.11% and the S&P 500’s loss of 1.87% in that time.
TX will be looking to display strength as it nears its next earnings release. On that day, TX is projected to report earnings of $4.62 per share, which would represent year-over-year growth of 657.38%. Meanwhile, our latest consensus estimate is calling for revenue of $4.1 billion, up 91.84% from the prior-year quarter.
TX’s full-year Zacks Consensus Estimates are calling for earnings of $16.93 per share and revenue of $15.54 billion. These results would represent year-over-year changes of +460.6% and +77.91%, respectively.
It is also important to note the recent changes to analyst estimates for TX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 moved 0.12% higher. TX is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, TX is holding a Forward P/E ratio of 2.58. This valuation marks a discount compared to its industry’s average Forward P/E of 4.08.
Investors should also note that TX has a PEG ratio of 0.14 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Steel – Producers stocks are, on average, holding a PEG ratio of 0.17 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 18, 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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