Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits through trending stocks [1] Group 1: Momentum Investing Characteristics - Fast-moving stocks can lose momentum if their growth potential does not justify high valuations, leading to limited upside or potential downside for investors [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [3] Group 2: Ternium S.A. (TX) Analysis - Ternium S.A. (TX) has shown a four-week price change of 4.8%, indicating growing investor interest [4] - Over the past 12 weeks, TX has gained 14.3%, with a beta of 1.36, suggesting it moves 36% more than the market [5] - TX has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - TX has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.51, indicating it is undervalued at 51 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides TX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Sonoco Products Co (NYSE:SON) - Dividend yield is 4.65% [6] - Analyst George Staphos from B of A Securities upgraded the stock from Neutral to Buy, raising the price target from $56 to $60 [6] - Analyst Gabe Hajde from Wells Fargo maintained an Overweight rating and increased the price target from $50 to $52 [6] - Recent news includes the completion of the sale of ThermoSafe unit to Arsenal Capital Partners on Nov. 3 [6] Group 2: Eastman Chemical Co (NYSE:EMN) - Dividend yield is 5.19% [6] - Analyst Michael Sison from Wells Fargo downgraded the stock from Overweight to Equal-Weight with a price target of $70 [6] - Analyst Patrick Cunningham from Citigroup maintained a Buy rating and raised the price target from $70 to $72 [6] - Recent news indicates that Eastman Chemical posted downbeat quarterly results on Nov. 3 [6] Group 3: Ternium SA (NYSE:TX) - Dividend yield is 6.94% [6] - Analyst Alfonso Salazar from Scotiabank maintained a Sector Outperform rating but cut the price target from $41 to $40 [6] - Analyst Timna Tanners from Wells Fargo initiated coverage with an Underweight rating and a price target of $30 [6] - Recent news shows that Ternium posted mixed quarterly results on Oct. 28 [6]

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.Benzinga readers can review the latest analyst takes on their favorite stocks by visiting Analyst Stock Ratings page. Traders can sort through Benzinga's extensive database of analyst ratings, including by analyst accuracy.Below are the ratings of the most accurate analysts for three high-yield ...

Core Insights - Ternium, a prominent Mexican steel producer, has faced significant challenges over the past year due to trade-related issues in Mexico and Brazil, which is a key secondary market for the company [1] Group 1: Company Performance - The company has been adversely affected by trade disputes, impacting its operational performance and market position [1] Group 2: Market Context - The trade-related issues in both its home country and Brazil have created a difficult environment for Ternium, highlighting the vulnerabilities in the steel industry [1]

Core Insights - Ternium S.A. announced a significant development regarding its subsidiary Ternium Investments S. [1] Group 1 - The announcement was made on November 5, 2025, indicating a strategic move by the company [1]

Financial Data and Key Metrics Changes - In Q3 2025, Ternium reported an increase in EBITDA driven by a decreasing cost per ton, with cash generation exceeding half a billion dollars during the quarter [5][13] - The net result for Q3 2025 was a loss of $270 million, primarily due to a $405 million non-cash loss related to the write-down of deferred tax assets at Usiminas [13][14] - Adjusted EBITDA is expected to decline slightly in Q4 2025 due to seasonal slowdowns, but adjusted EBITDA margin should remain consistent with the previous quarter [13][40] Business Line Data and Key Metrics Changes - Steel segment shipments increased, particularly in Mexico and Brazil, although lower volumes were noted in other markets [16][17] - The mining segment experienced a decline in net sales due to lower iron ore shipments and increased costs per ton in one of the Mexican operations [18] Market Data and Key Metrics Changes - In Mexico, steel demand has been significantly impacted by U.S. trade policies, with apparent consumption expected to decrease by 10% in 2025 [8][46] - Brazil's steel environment remains healthy with a projected 5% growth in apparent steel demand in 2025, despite challenges from unfairly traded imports [9][10] Company Strategy and Development Direction - Ternium is focused on strengthening its market position through ongoing optimization and cost reductions, particularly in response to the evolving global trade environment [11][12] - The company supports policies that promote regional integration and fair competition within the USMCA framework [6][9] Management's Comments on Operating Environment and Future Outlook - Management highlighted the uncertainty in the business environment due to ongoing changes in U.S. tariff frameworks and emphasized the importance of the USMCA [5][6] - There is optimism regarding potential structural reforms in Argentina that could enhance competitiveness and growth opportunities in the steel industry [10][46] Other Important Information - Ternium's board declared an interim dividend of $0.90 per ADS, maintaining the same payment level as the previous year [5][20] - The company received the Steel Award for Excellence in Sustainability for its renewable energy initiative in Argentina [11] Q&A Session Summary Question: What strategic opportunities arise from the recent elections in Argentina? - Management indicated that the elections may lead to structural reforms that could enhance competitiveness in the industry, but current ownership structure simplification is not a priority [22][23] Question: What is Ternium's plan if the U.S. maintains melt and pour conditions for steel products? - The company plans to continue with its investment strategy, focusing on increasing production capacity to meet regional demands [27][28] Question: What is the cash cost outlook for Q4? - Management expects further improvements in cash costs across operations, with a slight decrease in prices anticipated in Mexico and Argentina [35][40] Question: What is the outlook for demand in Mexico for 2026? - Demand is expected to recover by 4% in 2026, driven by infrastructure growth and stabilization in trade relations with the U.S. [46][48] Question: What is the status of the Pesquería project? - The new galvanized line is set to start production in December, with the overall project on track and within budget [68] Question: What are the expectations for EBITDA per ton in 2026? - Management aims for an EBITDA margin of around 10% entering 2026, with ongoing efforts to improve margins despite uncertainties in trade negotiations [74][79]

Financial Data and Key Metrics Changes - In Q3 2025, Ternium reported an increase in EBITDA driven by a decreasing cost per tonne, with cash generation exceeding half a billion dollars during the quarter [5][13] - The net result for Q3 2025 was a loss of $270 million, primarily due to a $405 million non-cash loss related to the write-down of deferred tax assets at Usiminas [13][14] - Adjusted EBITDA is expected to decline slightly in Q4 2025 due to seasonal slowdowns, but adjusted EBITDA margin should remain consistent with the previous quarter [13][40] Business Line Data and Key Metrics Changes - Steel segment shipments increased, particularly in Mexico and Brazil, although lower volumes were noted in other markets [16][17] - The mining segment experienced a decline in net sales due to lower iron ore shipments and increased costs per tonne in one of the Mexican operations [18] Market Data and Key Metrics Changes - In Mexico, steel demand has been impacted by uncertainty from U.S. trade policies, with a projected 10% decrease in apparent consumption for 2025 [8][48] - Brazil's steel environment remains healthy with an expected 5% growth in apparent steel demand in 2025, despite facing challenges from unfairly traded imports [9][10] - Argentina's steel activity leveled off due to pre-election uncertainty, but there is optimism for growth following the elections [10][11] Company Strategy and Development Direction - Ternium is focused on strengthening its market position through ongoing optimization and cost reductions, particularly in response to trade volatility and competition from Asian countries [11][12] - The company supports policies aimed at increasing local value addition and reducing reliance on imports, particularly in Mexico [9][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the USMCA framework and ongoing trade negotiations to ensure fair competition and long-term growth in the region [6][7] - The Mexican government is prioritizing efforts to fortify local value chains and promote self-sufficiency against external pressures [8][9] - Management expressed optimism about potential structural reforms in Argentina that could enhance competitiveness in the steel industry [10][11] Other Important Information - Ternium received the Steel Award for Excellence in Sustainability for its renewable energy initiative in Argentina, which significantly reduces its environmental footprint [11] - The board declared an interim dividend of $0.90 per ADS, maintaining the same level as the previous year [5][20] Q&A Session Summary Question: Strategic opportunities post-Argentina elections - Management indicated that the elections would not change existing projects and expressed optimism for structural reforms that could enhance competitiveness in Argentina [22][23] Question: Conditions for restructuring ownership - Management noted that restructuring depends on external factors, particularly the share held by ANSES, and emphasized the need for government reforms before considering such initiatives [24][25] Question: Plans if U.S. maintains melt and pour conditions - Management confirmed that they would continue with existing investment plans, anticipating increased production capacity in response to market conditions [27][29] Question: Cash cost outlook for Q4 - Management expects ongoing efficiencies to improve cash costs across operations in Mexico, Argentina, and Usiminas, despite slight price decreases [37][41] Question: Demand outlook for Mexico in 2026 - Management projected a recovery in demand for 2026, driven by infrastructure growth and stabilization in U.S.-Mexico trade relations [48][50] Question: Update on Compactos project - Management stated that decisions regarding the Compactos project would be made in mid-2026, with ongoing analysis of various alternatives [78][80] Question: Expectations for EBITDA per ton in 2026 - Management indicated that while they aim for an EBITDA margin of around 10% entering 2026, achieving this will depend on various market conditions and trade negotiations [76][82]

Financial Data and Key Metrics Changes - In Q3 2025, Ternium reported an increase in EBITDA driven by a decreasing cost per tonne, with cash generation exceeding half a billion dollars during the quarter [4][11] - The net result for Q3 2025 was a loss of $270 million, primarily due to a $405 million non-cash loss related to the write-down of deferred tax assets at Usiminas [11][12] - Adjusted EBITDA is expected to decline slightly in Q4 2025 due to seasonal slowdown, but the adjusted EBITDA margin is projected to remain consistent with the previous quarter [11][38] Business Line Data and Key Metrics Changes - Steel segment shipments increased, particularly in Mexico and Brazil, although lower volumes were noted in other markets [13][14] - The mining segment experienced a decline in net sales due to lower iron ore shipments and increased costs in one of the Mexican operations [15] Market Data and Key Metrics Changes - In Mexico, apparent steel consumption is projected to decrease by 10% in 2025, with expectations of a 4% recovery in 2026 driven by infrastructure growth [48] - Brazil's steel environment remains healthy with a 5% growth expectation in apparent steel demand for 2025, despite challenges from unfairly traded imports [8][14] Company Strategy and Development Direction - Ternium is focused on strengthening its market position through ongoing optimization and cost reductions, particularly in response to the evolving global trade environment [9][10] - The company supports policies that promote regional integration and fair competition within the USMCA framework [5][6] Management's Comments on Operating Environment and Future Outlook - Management highlighted the uncertainty in the business environment due to ongoing changes in the U.S. tariff framework, but expressed optimism about structural reforms in Argentina following the recent elections [5][22] - The company anticipates a slight decline in prices in Mexico and Argentina for Q4 2025, but expects stability in North American prices [38][42] Other Important Information - Ternium's board declared an interim dividend of $0.90 per ADS, maintaining the same level as last year [4][17] - The company received the Steel Award for Excellence in Sustainability for its renewable energy initiative in Argentina [9] Q&A Session Summary Question: Strategic opportunities post-Argentina elections - Management indicated that the elections would lead to structural reforms that could enhance competitiveness in Argentina, but no immediate changes to ownership structure are planned [21][23] Question: Ternium's plan if U.S. maintains melt and pour conditions - The company plans to continue with its investment strategy, anticipating that melt and pour conditions will remain relevant, especially in the automotive sector [27][29] Question: Cash cost outlook for Q4 - Management expects ongoing efficiencies in operations, with a slight decrease in cash costs anticipated in Mexico and Argentina [35][42] Question: Demand outlook for Mexico in 2026 - A recovery in demand is expected in 2026, driven by infrastructure growth and stabilization in trade between the U.S. and Mexico [48][50] Question: Update on the Pesquería project - The new galvanized line is set to start production in December, with the overall project on budget and timeline [72][74] Question: Expectations for EBITDA per ton in 2026 - Management aims for an EBITDA margin of around 10% entering 2026, with ongoing efforts to improve margins despite uncertainties in trade negotiations [84][85]

Core Insights - Ternium S.A. reported a revenue of $3.96 billion for Q3 2025, reflecting an 11.7% year-over-year decline and an EPS of $0.10, down from $0.16 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $3.99 billion by 0.79%, while the EPS was significantly below the consensus estimate of $0.78, resulting in an EPS surprise of -87.18% [1] Financial Performance Metrics - Ternium's stock has returned +8.5% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3] Steel Segment Analysis - Total steel product shipments were reported at 3,757 K Ton, below the average estimate of 3,884.72 K Ton [4] - Shipments in Mexico were 1,849 K Ton, compared to the estimated 1,941.65 K Ton [4] - Shipments in Brazil were 994 K Ton, against the average estimate of 1,024.70 K Ton [4] - Revenue per ton for total steel products was $992, lower than the estimated $1,008.80 [4] - Net sales for the total steel segment were $3.8 billion, below the estimated $3.96 billion [4] - Net sales in Mexico were $1.8 billion, compared to the estimated $1.95 billion [4] - Net sales in Brazil were reported at $950 million, slightly above the average estimate of $943.17 million [4]

Financial Performance - In Q3 2025, Ternium reported steel product shipments of 3.8 million tons, a 1% increase from Q2 2025 but a 9% decrease year-over-year[6]. - Adjusted EBITDA for Q3 2025 was $420 million, reflecting a 4% increase from Q2 2025 and a 14% increase year-over-year, with an adjusted EBITDA margin of 11%[6][7]. - The company experienced a net loss of $270 million in Q3 2025, which included a $405 million non-cash charge related to deferred tax assets and a $32 million loss from ongoing litigation[4][8]. - The company reported earnings per ADS of $0.10 in Q3 2025, down from $1.10 in Q2 2025[56]. - The company experienced a net loss of $(270) million in 3Q25, compared to a net income of $259 million in 2Q25 and $93 million in 3Q24[74]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $535 million, while capital expenditures (CAPEX) totaled $711 million in Q3 2025[4]. - Cash from operations in Q3 2025 amounted to $535 million, with a working capital decrease of $174 million[58]. - Free cash flow for 3Q25 was $(175) million, down from $234 million in 2Q25 and $(143) million in 3Q24[77]. - Capital expenditures in 3Q25 totaled $(711) million, compared to $(810) million in 2Q25 and $(446) million in 3Q24[77]. - The company’s total borrowings decreased to $(2.0) billion as of September 30, 2025, from $(2.4) billion as of June 30, 2025[78]. Segment Performance - The mining segment saw shipments of 2.0 million tons in Q3 2025, with an adjusted EBITDA margin of 11%[4][6]. - In Q3 2025, total net sales for the mining segment were $268 million, a decrease of 5% sequentially and an increase of 1% year-over-year[41]. - Cash operating income for the mining segment decreased sequentially and year-over-year, primarily due to lower margins and reduced sales volumes[42]. - Cash operating income for the steel segment was $391 million in 3Q25, with a cash operating income margin of 10%, up from 9% in 2Q25 and 7% in 3Q24[75]. - The mining segment reported a cash operating income of $38 million in 3Q25, with a cash operating income margin of 14%, down from 19% in 2Q25 and 20% in 3Q24[76]. Tax and Financial Results - Net financial results for Q3 2025 showed a loss of $35 million, including a $34 million loss in net foreign exchange results[49]. - Ternium's income tax expense in Q3 2025 totaled $444 million, which included a $405 million charge related to the write-down of deferred tax assets at Usiminas[52]. - The net result for Q3 2025 was a loss of $270 million, impacted by a $405 million write-down of deferred tax assets[54]. Dividends and Future Outlook - Ternium announced an interim dividend of $0.90 per ADS, totaling $177 million, with a projected total distribution of $2.70 per ADS for 2025, yielding approximately 7%[10][11]. - The company anticipates a slight decrease in Adjusted EBITDA for Q4 2025 due to seasonal shipment reductions, but expects the adjusted EBITDA margin to remain stable[13]. - In Brazil, Ternium is focusing on cost reduction initiatives to improve competitiveness amid challenges from unfairly traded steel imports[15]. - The outlook for Argentina is positive, with significant opportunities in agriculture, mining, and oil and gas sectors following the resolution of mid-term election uncertainties[16]. Overall Sales Performance - Total net sales for the first nine months of 2025 were $9,589 million, a 14% increase compared to $8,389 million in the same period of 2024[41]. - Changes in working capital resulted in a positive cash flow of $174 million in 3Q25, a significant decrease from $781 million in 2Q25[77]. - Ternium's net cash position decreased to $715 million by the end of September 2025, down $303 million from June 2025, due to cash demands from industrial expansion in Mexico[9]. - As of September 30, 2025, Ternium's net cash position was $715 million, a decrease of $303 million since June 2025[60].