Currently, Cleveland-Cliffs Inc (NYSE:CLF) has a Sell using the Portfolio Grader analytical stock evaluator. This analytical tool evaluates stocks by means of fundamental and quantitative analytical. This represents no change from the previous week and is the same ranking CLF has had from Portfolio Grader for 4 months. The Sell recommendation for Cleveland-Cliffs Inc is the outcome of a process of analysis that is proprietary which yielded conclusions that were above average in 1 area: analytical scoring that is near average; and produced below average results in 5 areas: an economic sector ranked below average in attractiveness, an industry group ranked below average in attractiveness, a ranking in its sector group that is in the third quarter, ranking in its industry group that is in the bottom quarter, and a mathematical computation of risk/reward that is unattractive.
With a $1.9 billion market value, CLF ranks in the bottom half of its industry group, Steel, and in the upper half of its sector group, Non-Energy Minerals, in market value. From the perspective of investment attractiveness, the current Portfolio Grader ranking for CLF puts it 21 among the 25 companies in this industry group, a spot that is well below-average; in the third quartile of the sector with a ranking of 112 among the 151 companies in the sector of its Non-Energy Minerals sector, and number 3,581 in the nearly 5,000 company Portfolio Grader universe.
The Non-Energy Minerals sector is ranked number 17 among the 20 sectors in the Portfolio Grader universe putting it in the bottom quartile of all the GICS sectors. The Steel industry group is ranked 101 among the 129 industry groups within the GICS sectors, placing it well below-average in terms of the Proprietary Quantitative Score scoring system.
The company scores are below-average in 3 of the 8 areas appraised by Portfolio Grader in the ranking of company stocks.
The company's operational scores provide mixed results with rankings for earnings growth and operating margin that are significantly above average, while the score for sales growth is well below average. Scores for visibility of earnings are superior with a ranking for earnings revisions, earnings surprises and earnings momentum that are much better than average. CLF's metrics for cash flow and return on equity are significantly worse than its industry group average. Based on these fundamental scores, Cleveland-Cliffs places in the top quartile of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to gauge CLF's shares from the viewpoint of risk/reward. This proprietary scoring methodology takes into account the relative value of the company's shares based on the recent $6.63 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, CLF currently scores well below-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.