Cleveland-Cliffs Inc. (CLF - Free Report) recently announced that the acquisition of AK Steel Holding Corporation has been completed successfully. The combined company will be led by Cleveland-Cliffs’ chairman, president and chief executive officer, Lourenco Goncalves.
Per Cleveland-Cliffs, this is a new era for the company as a producer of differentiated, high-quality iron ore, steel and metallics in North America. The deal combines North America’s largest iron ore pellets producer downstream into the production of value-added steel and specialty manufactured parts for the automotive industry.
The combined company will have a unique position in the industry. Cleveland-Cliffs will possess a dynamic combination of assets — two efficient integrated blast furnace steel mills along with a new state-of-the-art hot briquetted iron (HBI) facility, two electric arc furnace plants and many other technologically developed facilities.
Shares of Cleveland-Cliffs have plunged 52.7% in the past year compared with the industry’s 33% decline.
In fourth-quarter 2019 earnings call, Cleveland-Cliffs stated that it expects average iron ore prices, steel prices and pellet premiums to be $90 per metric ton, $650 per short ton and $50 per metric ton, respectively, for 2020. Based on these assumptions, the company expects to generate net income of $300-$325 million and adjusted EBITDA of $550-$575 million for 2020 on a standalone basis.
Zacks Rank & Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #4 (Sell).
Few better-ranked stocks in the basic materials space are Newmont Corporation (NEM - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Newmont has an expected earnings growth rate of 72% for 2020. The company’s shares have gained 19.7% in the past year.
Franco-Nevada has an expected earnings growth rate of 24.2% for 2020. Its shares have returned 16.4% in the past year.
Impala Platinum has an expected earnings growth rate of 424.1% for fiscal 2020. The company’s shares have rallied 31.5% in the past year.
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Cleveland-Cliffs Inc. (CLF - Free Report) recently announced that the acquisition of AK Steel Holding Corporation has been completed successfully. The combined company will be led by Cleveland-Cliffs’ chairman, president and chief executive officer, Lourenco Goncalves.
Per Cleveland-Cliffs, this is a new era for the company as a producer of differentiated, high-quality iron ore, steel and metallics in North America. The deal combines North America’s largest iron ore pellets producer downstream into the production of value-added steel and specialty manufactured parts for the automotive industry.
The combined company will have a unique position in the industry. Cleveland-Cliffs will possess a dynamic combination of assets — two efficient integrated blast furnace steel mills along with a new state-of-the-art hot briquetted iron (HBI) facility, two electric arc furnace plants and many other technologically developed facilities.
Shares of Cleveland-Cliffs have plunged 52.7% in the past year compared with the industry’s 33% decline.
In fourth-quarter 2019 earnings call, Cleveland-Cliffs stated that it expects average iron ore prices, steel prices and pellet premiums to be $90 per metric ton, $650 per short ton and $50 per metric ton, respectively, for 2020. Based on these assumptions, the company expects to generate net income of $300-$325 million and adjusted EBITDA of $550-$575 million for 2020 on a standalone basis.
Zacks Rank & Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #4 (Sell).
Few better-ranked stocks in the basic materials space are Newmont Corporation (NEM - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Newmont has an expected earnings growth rate of 72% for 2020. The company’s shares have gained 19.7% in the past year.
Franco-Nevada has an expected earnings growth rate of 24.2% for 2020. Its shares have returned 16.4% in the past year.
Impala Platinum has an expected earnings growth rate of 424.1% for fiscal 2020. The company’s shares have rallied 31.5% in the past year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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