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    Cleveland Cliffs (CLF) Could Be 19% Undervalued Following Its Recent Selloff

    Simply Wall St·07/01/2026 06:45:31
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    Recent Stock Move Puts Cleveland-Cliffs Under The Microscope

    Cleveland-Cliffs (CLF) drew attention after its stock declined 5.73% in the latest session, as investors looked ahead to an upcoming quarterly report that is expected to show earnings per share of a $0.18 loss.

    See our latest analysis for Cleveland-Cliffs.

    The latest drop comes after a tougher stretch for Cleveland-Cliffs, with a 7 day share price return of down 15.86% and a 30 day share price return of down 30.96%. However, the 90 day share price return is up 13.54% and the 1 year total shareholder return is up 15.64%, so recent momentum looks softer than the longer term picture suggests.

    If you are reassessing your exposure to materials and related themes, this could be a moment to broaden your watchlist and check out 8 top copper producer stocks

    So with Cleveland-Cliffs trading below some analyst price targets yet carrying a loss of US$1,209.0m on US$18,903.0m in revenue, is this a mispriced value opportunity, or is the market already factoring in future growth?

    Most Popular Narrative: 19.1% Undervalued

    At a last close of $9.39 versus a fair value estimate of $11.60, the most widely followed Cleveland-Cliffs narrative sees a gap that rests heavily on how demand, costs, and product mix evolve over the next few years.

    New investments in higher-margin stainless and specialty steels, buoyed by infrastructure investment, electrification, and clean-energy buildout, will expand Cleveland-Cliffs' addressable markets and support lasting product mix improvement, increasing revenue growth and supporting higher average selling prices.

    Read the complete narrative.

    Want to see what sits behind that higher fair value for Cleveland-Cliffs? The narrative leans on rising sales, improving margins, and a different earnings mix. Curious which specific growth and profitability assumptions need to land for that valuation to hold up? The full breakdown lays out the numbers in detail.

    Result: Fair Value of $11.60 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this Cleveland-Cliffs story also relies on continued tariff support and significant automotive exposure, both of which could quickly unsettle those fair value assumptions.

    Find out about the key risks to this Cleveland-Cliffs narrative.

    Next Steps

    With sentiment on Cleveland-Cliffs clearly mixed, this is a moment to move quickly, review the full data set, and decide where you stand. To weigh those concerns against the potential upside, start by looking at the 3 key rewards and 3 important warning signs.

    Looking for more investment ideas beyond Cleveland-Cliffs?

    If Cleveland-Cliffs has you thinking harder about risk, return, and timing, this is the moment to widen your opportunity set instead of watching from the sidelines.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.