timothy sykes logo

Stock News

Cleveland-Cliffs’ Unexpected Surge: What’s Driving the Steel Giant’s Performance?

Matt MonacoAvatar
Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Cleveland-Cliffs’ Unexpected Surge: What’s Driving the Steel Giant’s Performance? Thumbnail

Cleveland-Cliffs Inc. sees a market boost driven by key announcements, particularly a strategic partnership with a major automotive company, fueling investor confidence. On Monday, Cleveland-Cliffs Inc.’s stocks have been trading up by 5.66 percent.

Key Developments in Cleveland-Cliffs Inc.

  • An unexpected legal confrontation with U.S. Steel led to an increase in share price by 6.7% for CLF, as investors anticipate potential consolidations or defensive maneuvers.
  • Cleveland-Cliffs caught the market’s attention with a “Buy” rating issued by GLJ Research, who set a year-end 2025 price target of $14.27, betting on rising U.S. steel prices due to supportive tariff policies.
  • Jane M. Cronin joined Cleveland-Cliffs’ Board of Directors, bringing financial acumen and governance expertise from her role at The Sherwin-Williams Company, suggesting stronger strategic direction for CLF.
  • Jefferies adjusted its price target for Cleveland-Cliffs from $18 to $12 while maintaining a favorable “Buy” rating, reflecting mixed sentiments in the metals sector.
  • Continued market discourse surrounds the lawsuit filed by U.S. Steel and Nippon Steel against CLF, presenting as a high-stakes drama in the steel industry narrative.

Candlestick Chart

Live Update At 17:20:27 EST: On Monday, January 13, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending up by 5.66%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Earnings and Financial Metrics Overview

As millionaire penny stock trader and teacher Tim Sykes, says, “The goal is not to win every trade but to protect your capital and keep moving forward.” This mindset is crucial for traders who aim to survive and thrive in the markets. Beyond the pursuit of profit, managing risk and maintaining a steady course in the face of market volatility are essential tactics. In the world of trading, developing a balanced strategy that focuses on preservation and growth over the long term can make all the difference.

Cleveland-Cliffs Inc., one of the undisputed leaders in the North American steel industry, recently reported its financial performance data, resonating through the market with pronounced implications. Approaching this from a key financial metric perspective, one can identify both challenges and opportunities the company currently faces.

Reflecting on the gross margin of 50.6%, it is evident that CLF retains a strong ability to convert sales into profits before deducting operational costs. This figure underscores the competitive edge Cleveland-Cliffs manages even in an industry marked by price volatility and intense competition. The company’s revenue of $21.996B indicates a substantial market presence with an ability for expansion, should conditions favor it.

Nevertheless, the negative profit margins, with total profit margin figures at -2.31%, do highlight operating inefficiencies or potentially aggressive reinvestment strategies that need attention. Further exploration of their debt strategy reveals a calculated balance; a total debt-to-equity ratio of 0.55 suggests a certain prudence. Yet, the interest coverage ratio of 2.7 reflects that earnings comfortably cover debt interest obligations, albeit with limited room for adverse conditions.

More Breaking News

The market’s response to Cleveland-Cliffs’ earnings is a mix of caution and opportunity responsive to broader sector trends. Increased steel prices, bolstered by potential tariff implementations, support growth and optimism, while looming legal disputes with industry giants cast a veil of uncertainty.

Strategic Movements in the Steel Industry

The narrative around Cleveland-Cliffs is further enriched by its strategic maneuvers within the ever-volatile steel industry. The upgrade from a “Sell” to a “Buy” recommendation speaks volumes. This transformation wasn’t just a reassessment of numbers; behind it lies expectations pertaining to future steel demand buoyed by governmental policy shifts.

Cleveland-Cliffs’ capacity to integrate and navigate such sectorial shifts stems in part from its visionary leadership. The addition of Jane M. Cronin to the board exemplifies a forward-thinking approach. It integrates wise counsel on finance and governance, perhaps as a sign of future aggressive or innovative strategies in boardroom outlooks.

Beyond just numbers, the shadow cast by the lawsuit against Cleveland-Cliffs from U.S. Steel and Nippon Steel stirs curiosity and speculation in equal measure. It paints the picture of a contested battleground where industry giants jostle for market share and strategic advantage. The legal allegations and subsequent share rally suggest market players believe in Cleveland-Cliffs’ resilience and likelihood of emerging stronger.

Potential Impact on Market Sentiment

Underpinning the discourse around Cleveland-Cliffs is a blend of cautious optimism and analytical scrutiny. Investors and analysts seem to unite on the belief that, for CLF, the roadmap is lined with both hurdles and hopeful prospects. There’s a clear pathway laid out by ongoing developments which promise elevated performance should the macroeconomic environment and internal strategies align favorably.

Analyzing recent stock performance charts, with its closing price on Jan 13, 2025, reaching $10.49, it’s apparent that dynamics around stock values fluctuate in rhythm with industry news and strategic corporate moves. Such pricing reflects the broader narrative, where Cleveland-Cliffs oscillates between bouncing back from historical low points and gearing for advantageous high points.

Reflecting on cash flow and asset management, Cleveland-Cliffs’ current liabilities position and its nimble adjustment in working capital emphasize its flexibility in today’s unpredictable market. Cash reserves stabilization at $39M and targeted debt issuance underscore financial management strategies possibly courting conservative expansion.

Conclusion: A Bobbing Balance

The journey of Cleveland-Cliffs is no straight line; it’s more like a rollercoaster with peaks of potential offset by troughs of uncertainty. As seen through its legal maneuvers, strategic board appointments, and dynamic market presence, this steel behemoth continually pivots to remain relevant and competitive. Traders eyeing Cleveland-Cliffs should prepare for variability—acknowledging both the pitfalls born of legal contests and economic fluctuations, and the promise embedded in evolving strategic directions and market conditions. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” Embracing both halves with reciprocity gives a fuller depiction of the opportunities and challenges shaping the journey of this steel titan.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Our traders will never trade any stock until they see a setup they like. Their strategy is to capture short-term momentum while avoiding undue risk exposure to a stock’s long-term volatility. This method is especially useful when trading penny stocks or other high-risk equities, where rapid gains can be made by understanding stock patterns, manipulation, and media hype. Whether you are an active day trader looking for key indicators on a stock’s next move, or an investor doing due diligence before entering a position, Timothy Sykes News is designed to help you make informed trading decisions.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade, the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”