Cliffs Natural Resources, Inc. (CLF) recently spiked to a new multi-year high after reporting strong Q4 results that came in well ahead of expectations. Estimates have since jumped higher, providing a nice shot of momentum to this Zacks #1 rank stock.

Company Description

Cliffs Natural Resources, Inc. is a mining and natural resources company that specializes in iron ore and metallurgical coal. The company was founded in 1847 and has a market cap of $13 billion.

Although CLF has been trending higher for most of the last six months, shares got an extra boost on Feb 16 after the company reported strong Q4 results that handily beat expectations.

Fourth-Quarter Results

Revenue for the period was up huge, increasing 74% from last year to $821 million. Earnings also looked good, coming in at $2.82, a 31% ahead of the Zacks Consensus Estimate.

The good results were driven by strong domestic coal demand and increased demand for iron ore from international markets gaining momentum on the economic recovery. North American coal and Asia Pacific iron ore sales were both up 24% during the quarter.

Financial Profile

Cliffs will also continue to benefit from its strong financial profile, with cash and equivalents totaling $1.6 billion and long-term debt of $1.7 billion.

Estimates

We saw some pretty big movement in estimates off the good quarter, with the current year up $2.45 in the last month to $12.71. The next-year estimates is up $2.77 in the same time to $13.66, a solid 7.5% growth projection.

Valuation

But in spite of the gains, the valuation picture looks solid, with a forward P/E of 7X and a PEG Ratio (PE/Growth) of 1, in line with the traditional benchmark for value.

12-Month Chart

On the chart, CLF has been trending higher for most of the last six months, recently jumping higher on the good quarter. Look for support from the trend line on any weakness, take a look below.

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