CLF - Why Cleveland-Cliffs Stock Is Poised To Go Higher
2024-03-16 01:03:11 ET
Summary
- Cleveland-Cliffs stock has been in a recovery trend since September but has underperformed the S&P 500 Index in the last 3 years.
- Despite the existing risks in terms of pricing and cyclicality, I think CLF has much more reason for margin expansion in the medium term.
- In my opinion, the company is driven by strong management that prioritizes buybacks (10.4 million shares were repurchased in 2023 alone) and debt reduction.
- Cost-cutting efforts and a strong presence in the recovering automotive end market should ultimately lead the company to super-strong financial results.
- I keep holding CLF in my personal long-term portfolio and recommend you buy it too. But don't forget to do your own due diligence first.
My Thesis
You are now reading my 15th article on Cleveland-Cliffs Inc. ( CLF ) stock, which has been in a recovery trend since last September, but is still underperforming the S&P 500 Index ( SP500 ) ( SPX ) when we look at the last 3 years:
Seeking Alpha, Oakoff's coverage of CLF
