Cleveland-Cliffs Inc. (NYSE: CLF) is a publicly traded company that has been around since 1847. The company is known for its iron ore mining operations and has weathered many economic storms over the years. Recently, the stock has been performing well in the face of the zombie apocalypse that has crippled the global economy. In this article, we will discuss how Cleveland-Cliffs Inc. (NYSE: CLF) has been able to survive this difficult time and what the future holds for the company.
Q1 2023 Earnings Results for Cleveland-Cliffs Inc. (NYSE: CLF)
The first-quarter 2023 earnings results for Cleveland-Cliffs Inc. (NYSE: CLF) were not as bad as initially expected, with the company reporting a quarterly loss of $0.11 per share, compared to the Zacks Consensus Estimate of a loss of $0.21. The company managed to ship 4.1 million net tons of steel and reported revenues of approximately $5.2 billion, despite the challenging economic environment. With the stock having seen a 40% drop from its 52-week high, insiders have been buying the stock, indicating that they are confident in the company’s prospects. Moreover, analysts remain lukewarm about CLF stock with a consensus Hold rating. The company is likely to have gained from improved sales volumes and lower energy and raw material costs in Q1, and June-July has proven to be the strongest months to own CLF over the last eight years. CEO Lourenco Goncalves recently joined ‘Squawk on the Street’ to discuss the automotive end-market and why it is getting so much attention. Investors should keep an eye on broker-favorite stocks like AAL, DAL, CLF, AVT, and CVGI.
Analysts Remain Cautiously Optimistic about CLF Stock
Analysts remain cautiously optimistic about CLF stock due to the company’s ability to remain profitable in a soft landing or mild recession scenario. The recent earnings report indicates that the company is doing well, with revenues of approximately $5.2 billion and 4.1 million net tons of steel shipped. Insiders have been buying the stock, which has seen a 40% drop from its 52-week high. While the consensus rating is Hold, June-July has proven to be the strongest months to own CLF over the last eight years. The company is likely to have gained from improved sales volumes and lower energy and raw material costs in Q1. Cleveland-Cliffs CEO, Lourenco Goncalves, recently joined ‘Squawk on the Street’ to discuss the automotive end-market and why it is getting so much attention. The Fed’s Covid-19 pandemic response and the presence of zombie stocks in the S&P 500 could put pressure on companies reliant on cheap financing, but analysts remain cautiously optimistic about CLF stock. Investors should keep an eye on broker-favorite stocks like American Airlines (AAL), Delta Air Lines (DAL), Cleveland-Cliff (CLF), Avnet (AVT) and Commercial Vehicle Group (CVGI) to get a better idea of the company’s performance.
Fed’s Covid-19 Response and Impact on Zombie Stocks
The Fed’s Covid-19 response, which includes low interest rates and large-scale asset purchases, has provided a lifeline to these zombie stocks. Although the Fed’s actions have provided some stability to the markets, investors should remain vigilant and pay close attention to the underlying fundamentals of these stocks. Cleveland-Cliffs, in particular, is a stock that could benefit from the Fed’s policies and its ability to remain profitable in a recessionary environment.
Overall, Cleveland-Cliffs Inc. (NYSE: CLF) has proven to be a resilient stock, weathering difficult market conditions and even the zombie apocalypse. With its strong financial position and wide portfolio of products, the company looks to remain a strong presence in the market for years to come. Investors looking for a reliable stock to add to their portfolios should consider Cleveland-Cliffs Inc. (NYSE: CLF).