Core Viewpoint - A major U.S. steelmaker, Cleveland-Cliffs, is initiating plans to boost domestic production of rare earth minerals in response to China's trade restrictions, aligning with U.S. government efforts to enhance material independence [1][5][6]. Company Strategy - Cleveland-Cliffs is refocusing on its upstream mining assets to capitalize on the growing importance of rare earths, as stated by CEO Lourenco Goncalves [2]. - The company has identified two sites in Michigan and Minnesota with significant potential for rare earth mineralization based on geological surveys [4]. Market Context - The move by Cleveland-Cliffs is in line with the Trump administration's strategy to diversify sourcing of critical metals, which are essential for various technologies, including electronics and defense systems [5][6]. - The company aims to contribute to American manufacturing's independence from foreign sources for essential minerals [7]. Industry Implications - The U.S. government is actively seeking to address trade imbalances with China, particularly concerning rare earths, which have become a focal point in the ongoing trade dispute [9][10]. - Recent threats from the Trump administration to impose significant tariffs on China highlight the escalating tensions surrounding rare earth mineral exports [14].

Group 1 - The article discusses the performance of Commercial Metals Company (NYSE: CMC), indicating that the company's strength is not as robust as previously anticipated [1] - The investment group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports, providing coverage of 10 significant events monthly [1] - The article emphasizes the importance of actionable ideas for investors, particularly in the context of corporate capital allocation changes [1]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones involves significant challenges and risks [1] Group 1: Company Overview - Commercial Metals (CMC) is highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company is a manufacturer and recycler of steel and metal products, which is currently positioned for strong growth [3] Group 2: Earnings Growth - Historical EPS growth for Commercial Metals is 0.4%, but projected EPS growth for this year is expected to be 59.1%, significantly surpassing the industry average of 40% [4] Group 3: Asset Utilization - Commercial Metals has an asset utilization ratio (sales-to-total-assets ratio) of 1.13, indicating that the company generates $1.13 in sales for every dollar in assets, compared to the industry average of 0.9 [5] Group 4: Sales Growth - The company's sales are projected to grow by 4.8% this year, while the industry average is stagnant at 0% [6] Group 5: Earnings Estimate Revisions - There is a positive trend in earnings estimate revisions for Commercial Metals, with the current-year earnings estimates increasing by 3.8% over the past month [7] Group 6: Investment Positioning - Commercial Metals has achieved a Growth Score of B and a Zacks Rank 1 due to positive earnings estimate revisions, positioning it well for potential outperformance in the market [9]

Core Viewpoint - Cleveland-Cliffs reported third-quarter earnings with a net loss and a revenue drop, yet the stock surged by 24.5% due to investor interest in new developments related to critical minerals and a significant memorandum of understanding (MOU) with a global steel producer [1][3][4]. Financial Performance - The company reported revenue of $4.7 billion, which missed estimates by $200 million [3]. - A net loss was recorded, indicating challenges in the current financial performance [6]. Strategic Developments - CEO Lourenco Goncalves emphasized strong demand from the automotive sector, which is more profitable for the company [3]. - A new MOU with a major global steel producer was disclosed, described as "highly accretive" to shareholders, although details were limited [3][4]. Mining Operations Focus - The company is refocusing on its upstream mining assets due to the renewed importance of rare earths, with indications of potential rare earth minerals at two domestic mining sites [4]. - While the rare earth mineral discovery is speculative, it has generated significant market interest [5]. Investor Considerations - Investors are advised to focus on the steel business rather than the rare earths hype, as the mining operations are primarily to support steelmaking [5]. - Updates regarding the MOU are expected to have a more substantial impact on shareholder value than the rare earths exploration [5].

Swedish green-steel startup Stegra AB appointed a restructuring expert to its board of directors as the company fights to stave off a funding crunch https://t.co/36Ct1Um4pn ...

Core Viewpoint - Nucor (NUE) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on October 27, with a consensus estimate of $2.16 per share, reflecting a 45% increase year-over-year. Revenues are projected to reach $8.16 billion, marking a 9.7% increase from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 4.07%, indicating a reassessment by analysts [4]. The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the potential deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [9][10]. However, Nucor currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Nucor was expected to earn $2.62 per share but delivered $2.60, resulting in a surprise of -0.76%. Over the past four quarters, the company has beaten consensus EPS estimates three times [13][14]. Conclusion - While Nucor does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Core Insights - Cleveland-Cliffs is exploring the establishment of a rare earths mining business, with geological surveys indicating potential resources at its sites in Michigan and Minnesota [1][2] - The CEO emphasized the importance of reducing reliance on foreign nations, particularly China, for essential minerals, aligning with national strategies for critical material independence [2] - The U.S. currently has only one commercial rare earth mine, highlighting the strategic importance of developing domestic sources [3] Company Developments - Cleveland-Cliffs' shares increased by approximately 17% following the announcement of its plans to enter the rare earths sector [1] - The CEO's statement reflects a commitment to American manufacturing and reducing dependency on foreign supply chains for critical materials [2] Industry Context - Rare earth elements are crucial for various applications, including defense, electric vehicles, and semiconductor manufacturing, making them a focal point in U.S.-China trade tensions [2] - The U.S. Defense Department has engaged with MP Materials, the owner of the only commercial rare earth mine, to secure a stable supply through an equity stake and an offtake agreement [3]

Core Insights - The third quarter results indicate a significant rebound in domestic steel demand, particularly driven by the automotive sector, with Cleveland-Cliffs achieving its best auto steel shipment quarter since Q1 2024 [1][17] - The company has secured multi-year agreements with major automotive OEMs, ensuring higher sales volumes and favorable pricing through 2027 or 2028 [1][4] - The U.S. government's tariffs on steel and automotive products are expected to remain, prompting automotive manufacturers to seek stability and reduce exposure to foreign supply chains [1][4] Financial Performance - Cleveland-Cliffs reported an adjusted EBITDA of $143 million for the quarter, a 52% increase from the previous quarter, driven by higher realized prices and improved product mix [17] - Steel shipment volumes were 4 million tons, reflecting a reduction due to seasonal slowdowns, but the mix shifted favorably towards automotive, increasing the average selling price to $10.32 per net ton, up $17 from the prior quarter [17][18] - The company anticipates annual savings of $300 million from operational efficiencies implemented earlier in the year [18] Strategic Initiatives - The company is focused on domestic steel sourcing, with nine automotive-grade galvanized steel plants operational, positioning Cleveland-Cliffs as a key partner for U.S. automotive manufacturers [4][6] - A memorandum of understanding with a major global steelmaker aims to facilitate the onboarding of their clients moving production to the U.S., highlighting Cleveland-Cliffs' integrated operations from mining to finished products [10][11] - The company is also exploring opportunities in rare earth elements, with geological surveys indicating potential mineralization in Minnesota and Michigan [15][16] Market Dynamics - The automotive sector is showing signs of recovery, with Cleveland-Cliffs positioned to benefit as manufacturers shift back to steel from aluminum due to supply chain vulnerabilities [7][8] - The company expects aluminum's market share in the automotive space to decline, further solidifying its position as a leading supplier of automotive steel [8][9] - The Canadian market remains challenging, with high levels of steel penetration from foreign imports, prompting calls for the Canadian government to implement tariffs similar to those in the U.S. [12][13] Future Outlook - The company is optimistic about continued demand growth in the automotive sector, with new contracts expected to kick in and contribute to revenue in the upcoming quarters [37][38] - Cleveland-Cliffs is preparing for a strong 2026, with operational improvements and strategic partnerships expected to enhance profitability and cash flow [22][23] - The expiration of an onerous slab contract is anticipated to further improve the company's cost structure and production capabilities [20][23]

Core Insights - Cleveland-Cliffs reported increased demand for its steel products in Q3, attributing this growth to the Trump administration's tariffs on steel, which have positively impacted its U.S. operations [1][2][3] - The company's Q3 sales reached $4.73 billion, a rise from $4.57 billion year-over-year, although it fell short of analysts' expectations of $4.9 billion [3] - Cleveland-Cliffs is exploring opportunities in rare-earth mineral production, with potential mining sites identified in Michigan and Minnesota, aligning with national strategies for material independence [4][6] Financial Performance - Q3 revenue for Cleveland-Cliffs was $4.73 billion, up from $4.57 billion in the same quarter last year [3] - The company's stock price increased by 17% to $15.56 in early trading, marking a nearly 70% rise year-to-date [5] Strategic Initiatives - The CEO highlighted the importance of U.S. manufacturing to avoid tariffs, stating that the current trade policy is beneficial for securing new supply deals with major auto manufacturers [2][3] - The push into rare-earth minerals is part of a broader strategy to enhance domestic production capabilities, particularly in light of recent trade tensions with China [5][6] Market Context - The rare-earth sector has seen increased interest due to heightened trade tensions, particularly following China's tightening of export controls on rare-earth materials [6][7] - The U.S. government's actions, including the Pentagon's investment in MP Materials, reflect a growing focus on securing domestic sources of critical materials [7]

All right, going to get started with trading here a little more than a minute from now. Let's squeeze in a mad dash. Cleveland Cliffs out with its third quarter earnings.>> Very exciting. Uh Lorenzo Gonzalez saying some really amazing things about the new trade environment. United States is the most attractive steel market in the world and it's because of the Trump administration.They're enforcing the trade environment, forcing him to say you can't dump here. And David, get this. Right out of no, at the end ...