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    Cleveland-Cliffs (CLF), Why Is It Back In The Spotlight?

    Simply Wall St·11/08/2026 11:29:27
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    What the new labor agreements mean for Cleveland-Cliffs stock

    Cleveland-Cliffs (CLF) just locked in new four-year labor agreements with the United Steelworkers, covering about 12,000 workers. This deal removes contract uncertainty and gives investors clearer sightlines on labor costs and operational continuity.

    Recent trading has been choppy for Cleveland-Cliffs. The share price is at US$11.46 after a 1-day share price gain of 1.69%. However, the 7-day share price return is down 19.58% and the year-to-date share price return is down 15.74%, even as the 1-year total shareholder return is 9.88%. This hints that earlier gains have been fading and that the labor agreements are landing against a backdrop of cooling momentum and shifting risk views.

    Compare how Cleveland-Cliffs stacks up against other operators under pressure, and see which materials names screen best on balance sheet strength and fundamentals in our list of solid balance sheet and fundamentals (25 results).

    Labor peace is now in place and the share price has already reset after a sharp pullback. For Cleveland-Cliffs, is most of the potential upside already reflected in US$11.46, or does the valuation still leave meaningful room ahead?

    Most Popular Narrative: 19.6% Undervalued

    Against the current Cleveland-Cliffs share price of $11.46, the most followed narrative pegs fair value at $14.25, implying a sizable valuation gap based on its updated growth, margin, and discount rate assumptions.

    Analysts expect earnings to reach $1.4 billion (and earnings per share of $3.12) by about October 2029, up from -$464.0 million today. However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting $1.7 billion in earnings, and the most bearish expecting $521.3 million.

    See why 60 investors see Cleveland-Cliffs as 20% undervalued.

    Overall, the prevailing narrative points to a fair value of $14.25 for Cleveland-Cliffs, which compares with the last close of $11.46 and reflects assumptions built on a discount rate of 11.32%, mid single digit revenue growth, improving profit margins, and a future P/E below the broader US Metals and Mining industry.

    Result: Fair Value of $14.25 (UNDERVALUED)

    Still, this Cleveland-Cliffs story can change quickly if U.S. steel import protections ease or if input cost spikes again squeeze already thin margins.

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

    Next Steps

    Mixed feelings about Cleveland-Cliffs after these labor deals and valuation narratives are understandable. Consider acting sooner rather than later and pressure test the story yourself by weighing the 4 key rewards and 1 important warning sign.

    Looking for more Cleveland-Cliffs style investment ideas?

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