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Is It Too Late to Buy CLF?

ELLIS HOBBS•UPDATED JUL. 25, 2025, 5:03 PM ET
Reviewed by Jack Kelloggand Fact-checked by Tim Sykes

Cleveland-Cliffs Inc.’s stock has been trading up by 4.86%, buoyed by positive sentiment around steel profit prospects.

Highlights

  • Steel giant Cleveland-Cliffs reports record Q2 minus nonrecurring costs, eyeing aviation growth.
  • Predicted earnings surge in Q3 driven by the Canadian acquisitions and cutting costs.
  • Looking ahead, analysts excited about $1.8B in 2026 EBITDA, based on factory optimizations.
  • Recent Canadian call for increasing international steel duties in the country might affect CLF’s exports.
  • CEO claims optimism as auto production rises, hinting at strategic future moves.

Candlestick Chart

Live Update At 17:03:18 EST: On Friday, July 25, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending up by 4.86%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Cleveland-Cliffs’ Impressive Earnings

When analyzing the ever-changing landscape of trading, it’s critical to stay informed and adaptable to the shifting financial environment, understanding that market volatility is a factor that traders must navigate. As millionaire penny stock trader and teacher Tim Sykes says, “You must adapt to the market; the market will not adapt to you.” This sentiment highlights the importance of remaining flexible in your strategies and tactics, ensuring you’re responsive to market trends and ready to capitalize on opportunities as they arise.

Cleveland-Cliffs (CLF) recently wowed the market with its Q2 earnings, exhibiting record numbers in steel shipments though it faced a hefty net loss. This loss stemmed from one-off expenses. However, when examining the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), there’s a marked improvement over the first quarter. The company’s revenue for Q2 stood at a robust $4.93B, surpassing expectations. The market appears to have reacted positively to CLF’s potential, as demonstrated by the stock’s 13% rise.

More Breaking News

Key to this upward trajectory was the company’s decision on potential cost-cutting measures, coupled with the strategic acquisition of Stelco in Canada. These moves promise further positive shifts in earnings for the upcoming quarters, with the third quarter showing particular promise. Additionally, with unexpected expenditure cuts, like the reduction in capital expenditure from $625M to $600M, Cleveland-Cliffs appears to be tightening its purse strings and focusing on streamlined growth.

Impact of Key Financial Metrics

Diving into the financials reveals a mixed picture for Cleveland-Cliffs. The company’s EBIT margin shows a negative position, coming in at -10.9. But on the brighter side, revenue over five years increases by an impressive 48.66%. The current ratio — a measure of liquidity pledging the company’s ability to cover short-term obligations — stands at 2, signaling considerable financial health to address looming liabilities. A firm’s ability to handle debt is also crucial, revealing a total debt to equity ratio of 1.33.

CLF has ambitious projections for the future. By the end of the year, they’re expecting to see EBITDA grow from $400M to an achievable $1.8B by 2026. This growth is a testament to their aggressive cost-cutting measures and strategic investments, which promise to yield lucrative returns if executed diligently.

Analysts’ Feedback on CLF’s Long-term Vision

Many analysts appear positive about Cleveland-Cliffs’ future. With KeyBanc elevating CLF’s rating to ‘Overweight’ and a set price target of $14, there are evident expectations for further stock trajectory potential. Meanwhile, the remarks from Citi Analyst Alexander Hacking supporting the firm’s movement to $11, despite a current breakeven point challenge, add layers to the overarching positive sentiment.

Should the company’s strategic optimizations and managerial direction, steered under CEO Lourenco Goncalves’s leadership, continue along the current trajectory, CLF’s outlook appears encouraging. With such guidance, there is ample opportunity for CLF to fortify its standing in the industry.

Journey from Challenges to Opportunities for CLF

Not all news has been good for CLF. Recent developments in the Canadian trade policy could mean higher tariffs on steel imports. CEO Goncalves has not been shy in voicing support for such protectionist measures in the US, positing similar benefits for Canadian industries. Given Canada’s potential steely-natured policy adjustments, questions linger over any potential short-term impacts on CLF’s export strategy.

Another point to note is Cleveland-Cliffs’ strategic pause on investments emphasizing a prioritized view on essentials. Their CapEx reductions serve as a testament to this adjustment. Investment in infrastructure is seen as a cornerstone to sustain long-term growth, making pause-on expenditures decisions crucial to expansion.

Conclusion

Armed with record shipments, an optimistic EBITDA trajectory, and a dynamically navigated fiscal policy, Cleveland-Cliffs projects a robust future. As strategic decisions continue to unfold and the market acclimatizes, trading CLF in the days ahead could provide opportunities.

As millionaire penny stock trader and teacher Tim Sykes, says, “It’s not about how much money you make; it’s about how much money you keep.” The recent market bump may tempt some into taking advantage of the stock’s climb, but potential traders should closely watch upcoming quarters to evaluate the realized growth against expectations. With an experienced team at the helm and strategic endurance in place, CLF distinguishes itself with a hopeful outlook. Is it too late to engage? Time alone will tell.

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.

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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 .

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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”