Cleveland-Cliffs (CLF) has landed on investor watchlists after second quarter 2026 results showed higher sales and a smaller net loss, alongside the promotion of CFO Celso Goncalves to President and CFO.

Cleveland-Cliffs' recent results and leadership changes come after a mixed share price stretch, with the stock up 13.79% on a 1 month share price basis but still down 17.50% year to date, while the 1 year total shareholder return of 16.27% contrasts with weaker 3 and 5 year total shareholder returns.

If you are reassessing materials exposure after Cleveland-Cliffs' update, it could be a good time to look across the wider metals space using the 8 top copper producer stocks

Cleveland-Cliffs has bounced over the past month but is still down sharply year to date, which leaves a simple puzzle: Has the recent earnings improvement already been priced in, or is there meaningful upside still on the table as you look at valuation next?

Most Popular Narrative: 3.7% Undervalued

Cleveland-Cliffs is trading at $11.22 compared with a widely followed fair value narrative of $11.65, which treats current pricing as slightly below estimated worth.

New investments in higher-margin stainless and specialty steels, buoyed by infrastructure investment, electrification, and clean-energy buildout, will expand Cleveland-Cliffs' addressable markets and support lasting product mix improvement, increasing revenue growth and supporting higher average selling prices.

Want to see how Cleveland-Cliffs could reach that fair value target? The narrative focuses on rising margins, firmer revenues, and a future earnings multiple that the market has not fully reflected yet.

Result: Fair Value of $11.65 (UNDERVALUED)

However, the Cleveland-Cliffs narrative can unravel if U.S. steel tariffs ease, or if its blast furnace footprint faces faster decarbonization and cost pressure than expected.

Next Steps

Given the mixed signals around Cleveland-Cliffs, it makes sense to move fast, review the underlying data, and come to your own conclusion. A useful next step is to weigh the upside potential against the caution flags by checking the 3 key rewards and 3 important warning signs

Looking for more investment ideas beyond Cleveland-Cliffs?

If Cleveland-Cliffs has sharpened your focus, now is the moment to widen your watchlist and scan for other opportunities that fit your goals.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.