Why is Cleveland-Cliffs stock outperforming today?

Given the attractive combination of better-than-expected overall pricing on automotive steel and lower costs, it's no wonder Cleveland-Cliffs stock is outperforming today. The stock soared in the aftermath of the Ukraine war earlier this year, but has been cut in half since its March 2022 highs over recession fears.

How valuable are US Steel and Cleveland Cliffs stocks right now?

The most basic valuation measure is trailing P/E, a stock’s price relative to its last twelve months of reported earnings. The S&P 500 average P/E right now is 21.07, while X and CLF have P/Es of 1.0 and 2.28, respectively. The same level of value is evident if we look at price to book value: 0.47 for US Steel and 1.28 for Cleveland Cliffs.

Is Cleveland-Cliffs a good stock to buy?

Cleveland-Cliffs has approximately 28,000 employees and its shares are a component of the S&P 500. Small- and mid-cap stocks (SMID) have underperformed large-caps over the past 12 months, but may be in a better position to generate market-beating returns going forward.