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CLF stock chart shows rising large players volume and Twiggs Money Flow

Cleveland-Cliffs Shocks With Revenue Surging 51 Percent

Cleveland-Cliffs shocked traders on Friday, July 20, 2018, when they reported earnings. The mining company reported EPS of $0.76 for the quarter, beating the consensus estimate of $0.56. Revenue also crushed it coming in at $714 million for the quarter versus the $653.75 million estimate. Cleveland-Cliffs’s revenue for the quarter was up a shocking 51.6% year-over-year.

President and CEO Lourenco Goncalves said, “Our second quarter is a definitive statement about the new Cliffs and our earnings power. After almost four years of consistent execution of a well-designed and thoroughly implemented strategy, our company has become a very powerful cash-generating enterprise.”

While the revenue chart is not great, notice that it supports the thesis that this is a turnaround stock.

Cleveland-Cliffs Stock

CLF stock chart shows rising large players volume and Twiggs Money Flow

The rising large players volume and Twiggs Money Flow looks great. Both suggest large players piled in to CLF stock on Friday, July 20, 2018, after the earnings report blowout.

I don’t like the setup though as you’d be flat-out chasing up here. It is better to wait for a pullback or at least some type of consolidation and range contraction before entering. I like the turnaround play catalyst though and so I’m adding to the long-term buy and hold Basic Materials Portfolio. Analysts do not all agree with my buy rating. Overall there are 2 sell ratings, 5 hold ratings, and 8 buy ratings on the stock. There’s a split between analysts but after Friday’s earnings report, I would not be surprised to see more analysts switching to a buy rating. My price target is $11 which represents 10.44% upside from the current price.

Disclosure: I do not have any position in CLF stock.

Cleveland-Cliffs In the News

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