Why Cleveland-Cliffs Inc (NYSE: CLF) Stock is a Buy

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Cleveland-Cliffs Inc (NYSE: CLF) is a leading mining and natural resources company.  Founded in 1847, Cleveland-Cliffs Inc. is the largest and oldest independent iron ore mining company in the United StatesThe Company is a major supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota. Cliffs also operates an iron ore mining complex in Western Australia. Additionally, Cliffs produces low-volatile metallurgical coal in the U.S. from its mines located in Alabama and West Virginia. By 2020, Cliffs expects to be the sole producer of hot briquetted iron (HBI) in the Great Lakes region with the development of its first production plant in Toledo, Ohio

China has been the driving force of the steel industry for decades as it consumes more than half the world's iron ore. As a producer of iron ore, Cleveland-Cliffs counts on demand from steelmakers to drive its business, and the uncertain state of trade relations between the U.S. and China has put steel in the limelight lately. China's manufacturing industry might have slowed slightly but its construction sector could be in the first stages of a government-sponsored boom if a 20% rise in the price of iron ore over the past few months is a guide. 

The case for high-grade ore has been supported by toughening environmental rules. Because iron ore is only used to make steel, it is a first mover commodity when an economy picks up or slows down.  China is hungry for high iron content, particularly pellets, and that is happening in a world where pellets are scarce. With this as a backdrop, the Chinese paid almost $90 per metric ton for the pellets during the third quarter. Cleveland-Cliffs' CEO Lourenco Goncalves noted that demand for iron ore pellets in China is having a profound impact on the price of these higher-grade pellets. Add to this a $1 trillion dollar proposed infrastructure bill for 2019 and Cleveland-Cliffs Inc (NYSE: CLF) Stock could be a strong buy at current prices. 

This is one of the reasonsCleveland-Cliffs Inc (NYSE: CLF) investment grade on the Hade Platform has risen steadily, making it a Top 100 stock. Ironically, this stability in overall rating happens during a time when the overall market is falling, and as our investment grades as an average have consistently declined for the last four months, effectively predicting a correction. 

With overall investment grades still lower, we suggest holding large sums of cash and being very selective when making investment decisions. According to CLFstock’s current grade, it might very well be one of those selective opportunities. Why should you trust our ratings? The Hade Platform has proven over the course of three years through the application of Deep Learning Algorithms  (DLA)andArtificial Intelligence (AI)that it consistently outperforms Wall Street consensus estimates (63%) and major benchmarks such as the S&P 500 (250%). Access our premium services and start beating the market. 

Free users on Hade Platformcan build a watchlist of stocks and access investment grades from our database of more than 4,000 securities. Premium members can access the platform to get an instant look at which stocks rate highest for value, growth, dividend, and which have the greatest short-term momentum, thereby allowing members to identify areas of opportunity. Premium services include interest trendsrisk analysismachine learning predictions, Top 100 stocksMatriX Portfolio   and more.

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