Climbing demand and prices should put this flat-rolled steel producer on investors’ buy lists. Trading at a P/E of just 11.28, the shares appear to be very undervalued at this level.
Cleveland-Cliffs Inc. (CLF)
From Nate’s Notes
Rather than pushing into new multi-year high territory as was hoped might occur as last month’s issue was going to press, Cleveland-Cliffs’ stock has “only” managed to trade sideways instead since then. However, given the run that the stock has made over the past 12 months, I very much welcome this consolidation, as it is exactly what we both “need” and would expect to see after such a powerful move to the upside.
We already own “enough” for now in both Portfolios, but if you are still underweighted in this stock, you are encouraged to make it a “first buy” this month as part of a longer-term game to build a decent-sized position in commodities as time goes by.
The stock has solid relative strength and an economic backdrop that should help it continue to move higher make this a “Top Pick” again. CLF is a strong buy under $22 and a buy under $27.
Nate Pile, Nate’s Notes, NotWallStreet.com, 707-433-7903, September 2021