Cleveland-Cliffs Inc (NYSE: CLF) fell more than 10% Monday amid a broader market sell-off sparked by increasing China concerns and the anticipation of the Federal Reserve’s two-day policy meeting.
Cerity Partners’ Jim Lebenthal thinks the recent decline in shares of Cleveland-Cliffs is irrational.
“Absolutely nothing has changed in my outlook,” Lebenthal said Tuesday on CNBC’s “Fast Money Halftime Report.”
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Cleveland-Cliffs’ costs are going down while its revenues are going up, he said, adding that investors will see free cash flow returned to the shareholders.
“If you don’t own Cleveland-Cliffs and you’re not buying it right now, I can’t help you. I can’t make the case any more clear or logical.”
The economy is actually quite strong and is going to go through a massive inventory restocking, Lebenthal said. Companies like Cleveland-Cliffs are going to provide the goods and services that are needed to build new semiconductor plants, he added.
CLF Price Action: Cleveland-Cliffs has traded as high as $26.50 and as low as $5.48 over a 52-week period.
The stock was up 0.30% at $19.81 at time of publication.
Photo: Khusen Rustamov from Pixabay.
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