Cleveland Stock Story

CLF
 Stock
  

USD 19.67  0.22  1.13%   

The stock is undervalued compared to its sector. As some millenniums are still trying to avoid basic materials space, I will try to digest Cleveland-Cliffs a little further in order to understand its potential as a viable investment. We will evaluate why recent Cleveland Cliffs price moves suggest a bounce in July.
Published over two months ago
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Should you continue to hold Cleveland Cliffs (NYSE:CLF) based on the latest analyst consensus?

Cleveland Cliffs is UNDERVALUED at 23.79 per share with modest projections ahead.
Our trade advice tool can cross-verify current analyst consensus on Cleveland-Cliffs and to analyze the company potential to grow in the current economic cycle.
What is the right price you would pay to acquire a share of Cleveland Cliffs? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
Please read more on our stock advisor page.

What is happening with Cleveland-Cliffs this year

Annual and quarterly reports issued by Cleveland-Cliffs are formal financial statements that are published yearly and quarterly and sent to Cleveland stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Cleveland Cliffs often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How does Cleveland utilize its cash?

To perform a cash flow analysis of Cleveland Cliffs, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cleveland Cliffs is receiving and how much cash it distributes out in a given period. The Cleveland Cliffs cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cleveland Cliffs Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 2.79 Billion

Is Cleveland a risky opportunity?

Let's check the volatility. Cleveland is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Cleveland (NYSE:CLF) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of a Cleveland Cliffs stock makes you a part-owner of that company.

Cleveland-Cliffs Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Cleveland-Cliffs. The Cleveland consensus assessment is calculated by taking the average estimates from all of the analysts covering Cleveland Cliffs

Strong Buy
3
Hold
3
Strong Buy350.0
Buy00.0
Hold350.0
Sell00.0
Strong Sell00.0

Chances of Cleveland Cliffs to rebound

Value At Risk just dropped to -7.11, may indicate upcoming price depreciation. Cleveland-Cliffs exhibits very low volatility with skewness of 0.19 and kurtosis of 0.84. However, we advise investors to further study Cleveland-Cliffs technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cleveland Cliffs' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cleveland Cliffs' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Cleveland Cliffs Implied Volatility

Cleveland Cliffs' implied volatility exposes the market's sentiment of Cleveland-Cliffs stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Cleveland Cliffs' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Cleveland Cliffs stock will not fluctuate a lot when Cleveland Cliffs' options are near their expiration.

Our Conclusion on Cleveland Cliffs

Although some companies in the steel industry are either recovering or due for a correction, Cleveland may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Cleveland valuation and our trade advice on Cleveland Cliffs is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Cleveland Cliffs.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cleveland-Cliffs. Please refer to our Terms of Use for any information regarding our disclosure principles.

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