Cleveland-Cliffs Inc. (NYSE:CLF) shares are trading higher on Thursday following the company’s announced Celso Goncalves, who has been with the company since 2016, will be CFO, reflecting the board’s confidence in his leadership and strategic vision.
The company returned to positive free cash flow in the second quarter, with adjusted EBITDA rising to $286 million, nearly 3x higher than the first quarter.
Cleveland-Cliffs expects further improvement in the third quarter, with adjusted EBITDA projected at approximately $575 million. Adjusted EPS stood at 20 cents, in line with analyst expectations. Revenue came in at $5.23 billion, slightly above the $5.19 billion consensus estimate.
The company benefited from stronger automotive demand, the end of an uneconomic slab supply agreement, and footprint optimization efforts focused on improving pricing and reducing costs.
Management highlighted the positive impact of U.S. trade policies, including Section 232, on domestic steel utilization and manufacturing reshoring.
CEO Lourenco Goncalves expects continued earnings improvement in the second half of the year, supported by higher pricing, stronger volumes, and lower costs. The company expects its strongest second-half performance since 2021, with fourth quarter EBITDA projected to exceed third quarter levels.
CLF Technical Analysis: Momentum And Key Support Levels
Cleveland-Cliffs is currently trading at $11.37, which is 17.6% above its 20-day simple moving average (SMA) of $9.68, and just slightly above its 50-day SMA of $11.25. The stock is also 1.1% below its 200-day SMA of $11.52, indicating a mixed technical picture.
The moving average convergence divergence (MACD) is above its signal line, suggesting that downside pressure is easing, which aligns with the recent price surge. This improvement in momentum indicates that the stock may be gaining traction after a previous downswing.
- Key Resistance: $13.50 — a nearby level where rebounds can stall.
- Key Support: $9.50 — a nearby level where buyers previously stepped in.
Cleveland-Cliffs Stock Outperforms Materials Sector
Cleveland-Cliffs is currently outperforming the Materials sector, which is down 0.87% and ranks 8 out of 11 sectors today. This performance is particularly noteworthy given that the sector has seen a decline of 0.91% over the past 30 days and 2.92% over the last 90 days, indicating that CLF’s rise is a bright spot in an otherwise challenging environment for materials stocks.
The stock’s strong performance today contrasts sharply with the broader market’s struggles, highlighting its potential resilience and investor confidence amid sector-wide challenges.
CLF Earnings Preview And Analyst Ratings
Cleveland-Cliffs is slated to provide its next financial update on October 19, 2026 (estimated).
- EPS Estimate: 18 cents (Up from loss of 45 cents YoY)
- Revenue Estimate: $5.47 billion (Up from $4.73 billion YoY)
Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price forecast of $11.00. Recent analyst moves include:
- JPMorgan: Neutral (Lowers Target to $10.00) (July 15)
- Bank of America Securities: Neutral (Lowers Target to $11.50) (July 9)
- Wells Fargo: Equal-Weight (Lowers Target to $9.00) (July 9)
How Cleveland-Cliffs Ranks On Momentum Versus Market
Below is the Benzinga Edge scorecard for Cleveland-Cliffs, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 12.13) — Stock is underperforming the broader market.
The Verdict: Cleveland-Cliffs’s Benzinga Edge signal reveals a weak profile, indicating challenges in maintaining momentum despite recent price gains. Investors should remain cautious as the stock navigates a difficult market landscape.
CLF ETF Exposure: XME Weight And Passive Flows
- State Street SPDR S&P Metals & Mining ETF (NYSE:XME): 4.56% Weight
Significance: Because CLF carries meaningful weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
CLF Stock Price Activity: Cleveland-Cliffs shares were up 17% at $11.06 at the time of publication on Thursday, according to Benzinga Pro data.
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