Ken Fisher’s Top 10 Growth Stock Picks with 30+% Revenue Growth

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

Number of Hedge Fund Investors  in Q1 2024: 38

3 Yr Revenue Growth: 60.16%

Fisher Investments’ Q1 2024 Stake: $139 million

Cleveland-Cliffs Inc. (NYSE:CLF) is a sizeable American steel company headquartered in Cleveland, Ohio. This means that it is significantly exposed to the state of the industrial sector of the US economy. The exposure means that the current economic environment, as characterized by high interest rates and inflation, coupled with a slowdown in the commercial real estate sector can lead to headwinds for Cleveland-Cliffs Inc. (NYSE:CLF)’s shares. At the same time, President Biden’s Inflation Reduction Act, the Bipartisan Infrastructure Act, and the CHIPS And Science Act allocate trillions of dollars to upgrade America’s infrastructure and set up large chip manufacturing facilities. Over the long term, these will introduce significant tailwinds for Cleveland-Cliffs Inc. (NYSE:CLF)’s revenue. US hot roll steel prices fell to $745 per ton in June from $775 in May, which could lead to problems down the road. Yet, the firm has also shared plans to acquire Canadian steel company Stelco for a $2.5 billion price tag which could expand its revenue base.

Commenting on the pricing trends, here’s what Cleveland-Cliffs Inc. (NYSE:CLF)’s management had to say during the Q1 2024 earnings call:

“With production and sales of cars, trucks and SUVs remaining healthy in the US throughout Q1, our average sales pricing came in much better than expected due to a greater participation of automotive in our Q1 steel sales mix.

Conversely, in January and February, service centers went on a typical buyer strike, which led to reduced sales to the distribution sector. The net result of this dynamic of more sales to automotive and fewer tons delivered to service centers, led to a reduced sales output of 3.9 million net tons. Now that the distributors and service centers have come off the sidelines and steel pricing is on an upward trend, we expect to again exceed the 4 million tonne shipment level in the second quarter.”

CLF tops Ken Fisher’s growth stocks.But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.

Disclosure: None.