While Cleveland-Cliffs (CLF) benefits from its vertically integrated footprint, competitive strength and cost-saving actions, a significant pullback in steel prices and declining earnings estimates cast a pall on its prospects.
Steel maker Cleveland-Cliffs announced a deal to buy Canadian steel maker Stelco Holdings for $2.5 billion.
Cleveland-Cliffs, a vertically integrated steel mill operator, is poised to report its Q2 2024 results around July 23. We expect revenue to come in at $5.4 billion, marking a decline of about 12% compared to the last year, and slightly ahead of estimates.
In the latest trading session, Cleveland-Cliffs (CLF) closed at $15.40, marking a +1.45% move from the previous day.
Cleveland-Cliffs is scheduled to report its second quarter earnings later this month and investors' focus is shifting away from capital allocation. Profitability and costs will be in the spotlight, as gross margins seem to have bottomed already. Although there are strong short-term tailwinds, I do not see the stock as a buy yet and the rest of 2024 is unlikely to be a smooth sailing for shareholders.
Cleveland-Cliffs (CLF) reachead $15.47 at the closing of the latest trading day, reflecting a -1.09% change compared to its last close.
Despite recent underperformance, CLF remains undervalued with potential for margin expansion and growth in the steel industry. Analysts' concerns and downgrades may pose risks, but CLF's undervaluation and growth prospects make it a strong 'Buy' in the medium term. I believe CLF's EBITDA growth should continue due to a rebound in service center buyer demand and the continuation of cost reduction programs.
Buying the dip is a strategy often associated with buy-and-hold investors. However, it's also a good strategy for traders.
In the closing of the recent trading day, Cleveland-Cliffs (CLF) stood at $14.45, denoting a -1.97% change from the preceding trading day.
In the latest trading session, Cleveland-Cliffs (CLF) closed at $14.74, marking a -0.41% move from the previous day.
Cleveland-Cliffs (CLF) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Cleveland-Cliffs (CLF) reachead $14.71 at the closing of the latest trading day, reflecting a -0.88% change compared to its last close.