Why Cleveland-Cliffs Inc. (CLF) Crashed on Wednesday

We recently compiled a list of the Heavy Selling Drags Share Prices of These 10 Firms. In this article, we are going to take a look at where Cleveland-Cliffs Inc. (NYSE:CLF) stands against the other stocks.

Wall Street’s major indices finished mixed on Wednesday, though generally pessimistic, as investor sentiment was dampened by higher-than-expected consumer price data which fueled concerns of a potential inflation rebound.

The Dow Jones and S&P 500 declined by 0.50 percent and 0.27 percent, respectively. Only Nasdaq posted gains, albeit a marginal 0.03 percent.

Among Wednesday’s losers, 10 companies were the worst performers, primarily due to disappointing earnings results, dismal outlook guidance, and downgraded ratings, among others. In this article, we have detailed the specific reasons behind their lagging performance.

To come up with Wednesday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A welder in a hardhat soldering steel plates to a blueprint plan.

Cleveland-Cliffs Inc. (NYSE:CLF)

Cleveland-Cliffs Inc. declined for a second consecutive day, losing 6.55 percent to end at $10.56 apiece as investors appeared to have resumed profit-taking following an 18-percent surge in Monday’s share prices.

Investors were generally bullish on the company recently over expectations that it would benefit from the protectionism stance of the Trump administration, with the imposition of hefty tariffs on steel and aluminum imports from other countries.

This means that US companies, including CLF, are expected to benefit from lower competition and higher prices.

Lourenco Goncalves, CLF CEO, earlier expressed his support for the imposition of tariffs on imports, saying that they can make a “long-term positive impact” in making “America a manufacturing superpower once again.”

Overall CLF ranks 8th on our list of Wednesday’s top losers. While we acknowledge the potential of CLF as an investment, 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 CLF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.