Anticipated Performance of Cleveland-Cliffs in Quarter Two
**Historical Post-Earnings Return Analysis for Cleveland-Cliffs (NYSE: CLF)**
Investors keen on Cleveland-Cliffs (CLF) are keen to understand the company's historical post-earnings return performance, as it provides insights into the stock's reaction to earnings announcements and the subsequent impact on medium-term trends.
### Short-term Returns
Cleveland-Cliffs' stock performance following earnings announcements has been marked by volatility, often mirroring investor reactions to earnings surprises or guidance. The company has missed consensus EPS estimates in the last four quarters, with a notable negative surprise in the last reported quarter (-17.95%).
### Medium-term Returns
Over the past three months, CLF's stock has experienced a significant increase of approximately 34.47%, while year-to-date, it has shown a moderate increase of about 5%. However, medium-term performance is more closely tied to broader market conditions, industry trends, and fundamental analysis.
### Correlation Between Short-term and Medium-term Returns
The immediate reaction to earnings announcements can influence short-term trends, but medium-term performance is more about the company's strategic positioning, industry trends, and broader economic factors. While Cleveland-Cliffs is expected to beat earnings estimates in the upcoming quarter with a positive Earnings ESP, the company's medium-term stock performance may be influenced more by factors like industry outlook, supply and demand dynamics, and overall economic conditions.
### Key Figures
- Cleveland-Cliffs currently operates with a market capitalization of $4.8 Billion. - Over the previous twelve months, the company's revenue amounted to $19 Billion. - Over the last five years, there have been 20 earnings data points recorded for Cleveland-Cliffs. Of these, 10 have resulted in positive one-day (1D) returns. - The median of the 10 negative returns is -8.4%, while the median of the 10 positive returns is 5.7%. This percentage remains unchanged at 50% when considering data for the last 3 years for both positive and negative 1D returns.
### Upcoming Earnings Announcement
Cleveland-Cliffs is scheduled to announce earnings on July 21, 2025. Investors should keep an eye on the company's performance in the upcoming quarters, particularly given the anticipated contribution from the new anneal line.
### Investment Strategies
A relatively lower-risk strategy involves understanding the correlation between 1D and 5D returns following earnings. If 1D post-earnings return is positive, a trader may opt for a "long" position for the following 5 days.
### Portfolio Performance
The Trefis RV strategy has outperformed its all-cap stocks benchmark, including the S&P 500, S&P mid-cap, and Russell 2000. The High Quality portfolio, which includes Cleveland-Cliffs, has outperformed the S&P 500 and achieved greater than 91% returns since its inception.
Despite the anticipated savings for the second half, Cleveland-Cliffs is expected to remain in the red until these savings are realized. Nevertheless, the company's long-term strategic positioning and industry trends remain crucial factors for investors to consider.
- For those involved in investing, understanding the historical post-earnings return performance of Cleveland-Cliffs (CLF) in the finance industry is crucial, as it offers insights into how the stock responds to earnings announcements and its impact on the medium-term trends.
- When analyzing the business of Cleveland-Cliffs, it's essential to consider not only the immediate reaction to earnings announcements but also the company's strategic positioning, industry trends, and broader economic factors, which influence medium-term performance more significantly.
