In May, Cleveland-Cliffs reached an agreement with the machinists union at the plant it acquired from Arcelor Mittal for $1.1 billion in 2020. Earlier this week, about 400 workers at the company’s iron ore pellet facility joined the United Steelworkers union. The union represents about 2,000 workers in the company’s mines in Minnesota and northern Michigan.
Cleveland-Cliffs stock took off after the Arcelor Mittal deal, improving by about 190% since. However, it still trails rivals U.S. Steel and Steel Dynamics for overall stock performance for the period and for the past 12 months.
Of 12 brokerages covering the stock, five have a Buy or Strong Buy rating and the others rate it at Hold. At a price of around $16.50 a share, the implied gain based on a median price target of $19.00 is 15.2%. At the high price target of $27.00, the upside potential is 63.3%.
Analysts forecast second-quarter revenue of $5.79 billion, up 9.3% sequentially but 8.7% lower year over year. Analysts anticipate adjusted EPS of $0.70, up from a per-share loss of $0.11 in the prior quarter and down by 46.6% year over year. For the full 2023 fiscal year, analysts expect Cliffs to report EPS of $1.58, down 40%, on sales of $21.67 billion, down 5.7%.
The stock trades at 10.4 times expected 2023 EPS, 8.2 times estimated 2024 earnings of $2.01 and 9.2 times estimated 2025 earnings of $1.80 per share. The 52-week trading range is $11.82 to $22.83, and the company does not pay an annual dividend. Total shareholder return over the past year was negative 0.6%.
NXP Semiconductors
Over the past 12 months, Netherlands-based NXP Semiconductors N.V. (NASDAQ: NXPI) has seen its share price rise by more than 20%, including a gain of more than 34% so far in 2023.
Demand for chips from the auto industry and networking companies that produce equipment for 5G networks has remained strong, and these markets are among NXP’s most important. Earlier this month, the company said that China’s announced restrictions on exports of gallium and germanium are not expected to have a material effect on its business. In May, NXP boosted its dividend by 20%.
Of 28 analysts covering the company, 14 have a Buy or Strong Buy rating and the rest rate the stock at Hold. At a share price of around $212.00, the stock trades within a dollar of its $212.50 median price target. At the high price target of $250.00, the upside potential is nearly 18%.
Second-quarter revenue is expected to come in at $3.21 billion, up 2.7% sequentially but down 3.0% year over year. Adjusted EPS are forecast at $3.28, up 2.9% sequentially and down 6.8% year over year. For the full 2023 fiscal year, analysts are looking for EPS of $13.41, down 6.7%, on sales of $12.99 billion, down 1.6%.
NXP stock trades at 15.8 times expected 2023 EPS, 14.6 times estimated 2024 earnings of $14.55 and 13.3 times estimated 2025 earnings of $15.94 per share. The 52-week range is $132.08 to $224.40. NXP pays an annual dividend of $4.06 (yield of 1.84%). Total shareholder return for the past 12 months was 22.71%.
Originally published at 24/7 Wall St.
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