Shares of Cleveland Cliffs Inc (NYSE: CLF) recently closed around $17, which means it is near the bottom of the 50-day range of $17.64 to $32.02 on a business volume of 21.69 million shares and an average volume of 21.61 million shares. Also near the bottom of the 52-week range of $15.81 to $34.04, the current price target is $32.50. Obviously, resting consistently at the bottom of the range, the stock has quite a way to go to reach this target.
Founded in 1847 as Cliffs Natural Resources Inc, Cleveland-Cliffs Inc is the largest flat-rolled steel company in North America. They are also the largest iron ore pellet producer on the continent as well. Re-branded in August 2017, Cleveland Cliffs Inc now employs a vertically-integrated structure, beginning at mining and continuing on through iron making and steel-making. They also specialize in rolling and finishing, as well as operate downstream, via hot and cold steel parts stamping and associated components.
CLF Shares Are Doing Better Than the Industry As A Whole
Cleveland Cliffs Inc shares have showed a -21.8 percent return over the past month but this could be the end of the dip. While mining, overall, has not fared favorably of late, rumors that the company might experience significant changes in their business prospects could also be contributing to this decline.
Indeed, the CLF stock has struggled a great deal over the past year. For example, in the second quarter of 2021, analysts estimated Earnings Per Share (EPS) in the range 1.5 but actual EPS registered below that: at 1.33. The following quarter, however, Cleveland Cliffs, Inc EPS beat the 2.22 estimate with a value of 2.33. Then in Q4 of last year, analysts gave a broad estimate in the range of 2.11 but actual EPS sank outside of the low range, at 1.69. Fortunately, they seem to have stabilized a bit, as the actual EPS of 1.5 slightly exceeded the estimate of 1.46.
Expect Growth to Come, Eventually If Not Soon
Moving forward the mining company is expected to post an EPS of $1.48 for this quarter. Should they accomplish this, it will represent a 1.4 percent bump from the same period last year. More importantly, this could contribute to their consensus earnings estimate of $6.14 for the fiscal year, overall. This represents a change of +4.6 percent over the year prior.
With that in mind, the consensus earnings estimate does not have quite as positive an outlook for the next fiscal year. Indeed, the estimate of $4.95 indicates an actual loss of 19.3 percent from the prior year's expectations. Perhaps the only upside to this is the price estimate has increased 125.3 percent over the past 30 days.
Looking To Turn Things Around
Cleveland Cliffs has received a consensus sales estimate in the realm of $6.14 billion for the most recent quarter. This represents an increase of 21.7 percent, year-over-year. For the current and next fiscal year estimates are $24.2 billion and $20.88 billion. These represent an increase of 18.6 percent and a drop of 13.9 percent, respectively.
Last quarter, Cleveland Cliffs reported solid revenue of $5.96 billion, which represents a 47.1 percent bump, year-over-year. What is, perhaps, more baronial is an EPS of $1.71 which is five times better than the $0.35 EPS for the same period a year ago.
With market capitalization near $9.47 billion, analysts offering 12-month price targets over the previous quarter give CLF a consensus price target of $31.50. CLF has a forecast upside of 74.5 percent, which is up from its most recent price of $18.05. This is the average, of course, with a high estimate of $47 and a low estimate of $24.
Analyst Give Cleveland Cliffs Inc a BUY Rating
Overall, though, Cleveland Cliffs have already beat EPS estimates in the past four consecutive quarters. As a matter of fact, they did it twice in that period. They also beat revenue estimates three times over the same period.
At the end of the day, financial analysts give CLF stock a consensus rating of Buy. This means experts believe the company is poised to grow. Analysts have given the company an average rating of 2.67, based on 4 buy ratings and 2 hold ratings. Fortunately for the firm zero analysts have given the company a Sell rating; and in all this means it would be a smart time to acquire a few shares before their value increases
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