Moody’s Lifts Outlook on Cliffs Natural Resources (NYSE:CLF) – CLF, VALE, MT, BBL

Moody’s Corporation (NYSE:MCO) Investors Service lifted its guidance on Cliffs Natural Resources Inc (NYSE:CLF) from negative to stable and mentioned the mining corporation’s debt reduction and preservation of higher cash flow levels.

The ratings company affirmed the Cleveland Ohio based company’s Baa3 debt rating, leaving it one notch over junk territory.

New York based Moody’s reported the guidance shows its forecast that Cliffs will continue to successfully lower costs and achieve better operating efficiencies.

Whereas the outlook forecasts iron ore prices to fluctuate on a quarterly basis and Cliffs’ performance along with them, Moody’s warned that iron ore prices falling and staying much lower than $130 per ton would shift the outlook back to negative.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Vale SA (ADR) (NYSE:VALE) rose +2.28% to settle at $18.42, ArcelorMittal (ADR) (NYSE:MT) moved up +0.34% to end at $14.92 while BHP Billiton plc (ADR) (NYSE:BBL) jumped +0.13% to finish at $63.51 on Tuesday.

Cliffs Natural Resources Inc (NYSE:CLF) last session’s volume of 10.33 million shares was higher than its average volume of 8.65 million shares. The stock after opening at $26.17 hit high price of $26.25 and then closed at $25.81 by scoring -0.77%.

CLF generated revenue of $5.87 billion in the previous twelve months and earned -$935.30 million. The Company showed a negative -12.90% in the net profit margin as well as in its operating margin which remained at -5.26%. Company’s annual sales growth for the past five years was 20.88%.

The CLF’s past twelve months’ price to sales ratio was 0.70 and price to cash ratio remained 20.92. As far as the returns are concerned, CLF’s return on equity was recorded as -17.96% and return on investment decreased -6.63% while its return on asset stayed at -5.39%.

The stock showed weekly downbeat performance of -10.04% which was maintained for the month at -27.34%. Likewise the negative performance for the quarter was recorded as -16.93% and for the year was -59.10% while the YTD performance remained at -32.73%.

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