This mining stock will outperform the S&P 500 in 2022

on Jan 21, 2022
  • Jim Lebenthal says Cleveland-Cliffs will outperform the benchmark this year.
  • He gave several reasons for his bullish stance on CNBC's "Halftime Report".
  • Shares of the mining company are down more than 25% in January.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Shares of Cleveland-Cliffs Inc (NYSE: CLF) are down more than 25% in January, but Cerity Partners’ Jim Lebenthal is convinced it’s a stock that will outperform the benchmark S&P 500 index in 2022.

Lebenthal defends his bullish call on CNBC

Copy link to section

Lebenthal agreed that the mining company is likely to face volatility this year but expressed confidence in the strength of its fundamentals. On CNBC’s “Halftime Report”, he said:

It’s a stock that before the pandemic had four times the return of the S&P 500. I think it’s going to beat the benchmark mightily over the next year, but with that sort of return comes volatility. You can’t have those returns without some breathtaking dips.

Lebenthal’s bullish call is particularly interesting since Cleveland-Cliffs already had a fantastic 2021 that ended with a close to 50% gain in the stock price. In October, the Ohio-based company secured a new source of raw materials with a $775 million acquisition of Ferrous Processing & Trading Co.

There’s plenty to like about Cleveland-Cliffs

Copy link to section

Also on Friday, Intel said it will build a $20 billion computer chip facility in Ohio that Lebenthal sees as another positive catalyst for Cleveland-Cliffs. He added:

Featured Broker

Looking to invest?

Invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform, with our highest-rated broker.


Some people will say steel prices are down by 25% from their recent highs. But remember that iron-ore prices are down 40%, which means margins are expanding, and volume is picking up, as autos get produced, and infrastructure gets spent.

Other notable reasons why he’s bullish on the stock include the strength of the company’s free cash flow and the fact that it’s about to launch a sizable stock repurchase programme. The $8.68 billion firm traded at a PE multiple of 4.47.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.


Copy expert traders easily with eToro. Invest in stocks like Tesla & Apple. Instantly trade ETFs like FTSE 100 & S&P 500. Sign-up in minutes.


eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

Get demo account
Steel USA Mining North America Stock Market World