Cleveland-Cliffs heads into its July 23 earnings report with its stock trading at $9.28, which is 14.5% below a widely followed fair value estimate of $10.86. The share price has fallen 26.81% over the past 30 days and 31.76% year to date, though the one-year total shareholder return is down a milder 2.11%. Bulls view the steel producer as a beaten-down name trading below intrinsic value, while bears point to recent losses and cautious sentiment around the upcoming results. The company has been cutting unit costs through footprint optimization, internal coke and feedstock integration, and lower fixed costs and SG&A, with further savings expected to boost free cash flow and reduce leverage. Key risks include a potential easing of Section 232 steel tariffs and rising decarbonization costs tied to its blast furnace footprint.
Cleveland-Cliffs IncStock is 14.5% below fair value estimate, with cost-cutting expected to boost free cash flow and reduce leverage.