Billionaire Prem Watsa’s 10 Stock Picks With Highest Potential

2. Cleveland-Cliffs Inc. (NYSE:CLF)

Number of Hedge Fund Holders: 49

Fairfax Financial Holdings’ Stake: $55.45 Million

Analysts’ Upside Potential as of April 21: 76.12%

Cleveland-Cliffs Inc. (NYSE:CLF) is a basic materials company that specializes in flat-rolled steel products for the automotive industry. It produces a wide range of flat-rolled steel, including carbon, stainless, electrical, plate, and long steel.

Bank of America lowered its stock price target on April 7 to $8.50 but maintained a neutral rating on the shares. The price cut comes amid growing concerns that a challenging macro environment affected by trade tariffs will drown base metal fundamentals and only benefit gold and silver, double up as a haven. Amid the concerns, Cleveland-Cliffs Inc. (NYSE:CLF) remains in a strong position amid soaring demand for its hot-rolled steel.

Lead times have increased from 3 to 7 weeks as a bounce back from weak steel demand in 2024 continues to improve. Cleveland-Cliffs Inc. (NYSE:CLF) is one of the companies well positioned to benefit from the implementation of the 25% tariffs on steel imports as a local producer. Ongoing plans to acquire United States Steel Corp assets underscore the company’s efforts to strengthen its industry position.