Cleveland-Cliffs Soars 12.45% on Narrower Loss, Tariff Benefits

Cleveland-Cliffs (CLF) surged 12.45% today, marking its fourth consecutive day of gains, with a total increase of 17.53% over the past four days. The share price reached its highest level since March 2025, with an intraday gain of 15.82%.

The strategy of buying CLF shares after they reach a recent high and selling them one week later resulted in a -9.91% return over the past five years. The benchmark return was 58.96%, indicating a significant underperformance of the strategy. The Sharpe ratio was -0.09, and the maximum drawdown was 0.00%, suggesting that the strategy had a negative risk-adjusted return and no risk of further losses.

Cleveland-Cliffs reported a narrower-than-expected loss of 50 cents per share compared to the anticipated 71 cents loss, and revenue slightly exceeded estimates at $4.93 billion. Despite recording a loss, the results were better than feared, contributing to a positive market reaction.

The Trump administration's tariffs have positively impacted Cleveland-Cliffs by supporting domestic steel and automotive sectors. The CEO's remarks highlight the expected continued benefits from tariffs, which could contribute to stock price improvement.

Cleveland-Cliffs has implemented cost-cutting strategies, including reducing steel unit costs. The company is focused on generating free cash flow and reducing debt, which may enhance investor confidence and impact stock price.

There have been upgrades in the stock's rating and price target increases from analysts, indicating a more optimistic outlook for the company's growth potential. This can influence investor sentiment and drive stock price changes.

Cleveland-Cliffs has received interest in the potential purchase of three idled facilities, which could be a factor in stock price dynamics as it may impact the company's financials and strategic positioning.