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Will Cleveland-Cliffs’ Strategic Moves Pay Off?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 6/2/2025, 9:19 am ET 6 min read
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Cleveland-Cliffs Inc. stocks have been trading up by 25.21 percent, driven by prevailing positive market momentum.

Market Reactions

  • CEO Lourenco Goncalves announces strategic shifts aimed at optimizing Cleveland-Cliffs’ operations, targeting core automotive markets with a projection of saving over $300M annually.
  • Recent changes suggest anticipated EBITDA uplift, thanks to transitioning away from less profitable avenues like the slab contract with ArcelorMittal/Nippon Steel Calvert.
  • The firm’s Q1 results show revenue meeting analyst expectations, amounting to a notable $4.63B, marking stability amidst structural changes.
  • B. Riley reduces stock price target to $14 but reinforces Buy rating, foreseeing long-term benefits due to the optimization and recovering automotive volumes.
  • Company moves signal significant changes, such as operational cost efficiency and asset realignment aimed to strengthen financial health amid broader economic pressures.

Candlestick Chart

Live Update At 09:18:32 EST: On Monday, June 02, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending up by 25.21%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of Cleveland-Cliffs’ Financial Performance

As traders venture into the fast-paced world of the stock market, they face numerous decisions that can impact their financial outcomes significantly. It’s often tempting to hold onto losing trades in hope of a turnaround, but this strategy can lead to even greater losses. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s better to go home at zero than to go home in the red.” This wise principle reminds traders of the importance of preserving capital by avoiding unnecessary risks, emphasizing the value of strategic exits over optimistic speculation.

Cleveland-Cliffs Inc., a giant in the steel industry, continues to showcase its resilience through strategic shifts. The company’s recent earnings report sheds light on its current standing and future outlook. Despite a modest dip in the Q1 earnings with a reported net income loss, the revenue forecast met expectations at $4.63B. This figure indicates some stability, helping stem uncertainties.

The narrative around Cleveland-Cliffs is notably shaped by its recent operational recalibrations. CEO Lourenco Goncalves is spearheading an ambitious restructuring that involves curtailing non-core operations. By doing so, the firm aims to save upwards of $300M annually. The decision to shed the slab contract with ArcelorMittal/Nippon Steel Calvert is another positive move according to analysts, easing Cleveland-Cliffs out of less profitable commitments. The company’s P/E ratios remain undefined, typical of firms navigating through restructuring phases.

In terms of management metrics, Cleveland-Cliffs’ profitability ratios such as EBIT margin remain challenged at -8%. However, the operational tweaks promise a corrective shift in the coming quarters. The company retains a sound liquidity position, keeping afloat with a healthy current ratio of 2.1, a notable lever against economic vicissitudes.

More Breaking News

The steel titan’s debt-to-equity ratio is tallied at 1.22. While this is significant, the strategic financial engineering of its debt profile offers a buffer, enabling the firm to weather economic tides better. Operationally, the company registers a gross margin standing strong at 100%, a testament to efficient cost management and revenue generation balancing acts. Importantly, this places Cleveland-Cliffs in a favorable position within the cyclic steel market dynamics.

Decoding Strategic Moves

Cleveland-Cliffs’ strategic redeployment marks a decisive turning point, as the company adopts a back-to-basics approach. By homing in on its strengths in automotive steel supplies, the business sets sight on fortifying its economic moats. As economic volatility prevails, margin improvements hinge on cutting non-essentials. The expectation is that such trimming, combined with potential market recovery, will tilt the scales positively in favor of incremental EBITDA growth.

Lourenco Goncalves’ leadership focuses on tailoring Cleveland-Cliffs’ portfolio to resonate more comprehensively with burgeoning automotive demands. The narrative is largely pegged on Cleveland-Cliffs eschewing lesser profitable channels to re-anchor profitability. This transformation leans towards operational pragmatism and aligns Cleveland-Cliffs as an agile contender in a fiercely competitive sector.

Furthermore, as evidenced by B. Riley’s upbeat prognosis, despite the trimmed down price target, the semblance of deliberate optimism can be seen. This vote of confidence enriches the narrative of Cleveland-Cliffs’ anticipated market recovery. The transition portends improvement in future earning statements, particularly when automotive markets fully stabilize in the post-pandemic tide.

Financial Impact and Speculations

Examining Cleveland-Cliffs’ intricate balance sheet unearths a landscape of strategic leverage. With an enterprise value of $10.54B, the company, despite its thick debt blanket, may hold well enough reserves to adapt. Noteworthy operational cash flows combined with potential efficiency gains suggest Cleveland-Cliffs’ future could witness an inflection towards profitability in the medium term.

Cleveland-Cliffs Inc. paves a path fraught with challenges but sprinkled with incremental resilience. The optimism surrounding its automotive recovery ties into a broader narrative that Cleveland-Cliffs aims to turnboard its ship. As millionaire penny stock trader and teacher Tim Sykes says, “Preparation plus patience leads to big profits.” This mindset aligns with the company’s efforts to simplify operations and improve cost control, which may allow it to build a sustainable growth model. As market watchers await ensuing quarterly results, the longstanding steel purveyor is poised for an exciting journey ahead, potentially navigating towards a more robust market standing.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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