Cleveland-Cliffs Inc. (NYSE: CLF) is once again making waves in the U.S. stock market. After trading in a tight range for several months, CLF stock is garnering renewed interest from retail investors, value seekers, and analysts. But is this steelmaker truly an underdog story, or just another cyclical stock caught in the storm of global economic uncertainty? Should investors put their money in it?
Let’s dive deep.
What Does Cleveland-Cliffs Do?
Cleveland-Cliffs is a major player in the U.S. steel industry. It is the largest flat-rolled steel producer in North America and the largest supplier of iron ore pellets in the country. The company serves major industries such as automotive, construction, and manufacturing – sectors that often serve as indicators of broader economic health.
Founded in 1847, the company has been through booms and busts, adapting to everything from industrial revolutions to the EV era. Its 2020 acquisition of AK Steel and ArcelorMittal USA made it a vertically integrated steel giant, controlling everything from mining to finished steel products.
Why Is CLF Stock Trending Now?
1. Steel Demand Is Heating Up
With the U.S. infrastructure boom gaining steam thanks to federal spending, demand for domestic steel is climbing. Cleveland-Cliffs, with its strong ties to U.S. automakers and infrastructure suppliers, is uniquely positioned to benefit.
2. EV Boom = More Steel Needs
Electric vehicles might be known for lithium and cobalt, but steel remains a core material—especially for structural safety. Cleveland-Cliffs is betting big on becoming the go-to steel supplier for the EV supply chain.
3. Buyback Program & Debt Reduction
Earlier this year, Cleveland-Cliffs announced an aggressive share buyback program and made strides in paying down debt—both moves that appeal to long-term investors and could help support the stock price.
4. Short Interest Spark?
As of late May 2025, CLF stock saw a bump in short interest data, causing some retail traders to speculate on a potential short squeeze. While not as volatile as meme stocks, it’s gaining attention on platforms like Reddit and Stocktwits.
Financial Snapshot (Q1 2025)
- Revenue: $5.3 billion (up 6% YoY)
- Net Income: $210 million
- EPS: $0.42 (beat analyst expectations)
- EBITDA: Strong margins despite inflationary pressures
CEO Lourenco Goncalves emphasized in the last earnings call that the company’s cost controls and operational efficiencies are driving steady profitability—even in a mixed macro environment.
Risks to Watch
Despite the upside potential, there are clear risks:
- Steel Prices Are Volatile
Steel is a cyclical commodity. Prices can swing wildly based on global demand, tariffs, and geopolitical issues. - High Labor Costs
Cleveland-Cliffs’ unionized workforce is a strength in terms of stability but can also be costly during inflationary periods. - International Competition
Cheap steel imports (especially from Asia) remain a long-term threat to domestic producers, despite tariff protections.
What Are Analysts Saying?
- JP Morgan: “CLF remains undervalued with a fair price target of $24.”
- Goldman Sachs: “Cautiously optimistic. Look for long-term growth tied to infrastructure and EV sectors.”
- Retail Sentiment: Mixed. Some traders see short-term momentum; others view it as a long-term industrial play.
Bottom Line: Is CLF Stock a Buy in 2025?
If you’re looking for a speculative growth stock, CLF might not be that attractive. But if you’re a value investor looking for an American-made industrial stock with long-term potential, Cleveland-Cliffs is worth your attention.
Steel may not be glamorous, but in a world that’s rebuilding, electrifying, and modernizing, it’s the backbone—and Cleveland-Cliffs is betting on that future.
Disclosure: This article is for informational purposes only and does not constitute investment advice. Always do your own research or consult a financial advisor.