14 Best Growth Stocks Under $10 to Buy Right Now

Page 10 of 12

3. Cleveland-Cliffs Inc. (NYSE:CLF)

Stock price as of May 2nd: $8.88

Revenue CAGR last 5 years: 90.00%

Number of Hedge Fund Holders: 49

Cleveland-Cliffs Inc. (NYSE:CLF) is a vertically integrated steel manufacturer and iron ore producer, primarily serving the North American metals market. The company operates across the entire steel production value chain, from mining iron ore and producing iron ore pellets to manufacturing flat-rolled steel, including hot-rolled, cold-rolled, coated, stainless, electrical, and specialty steel products. Its products are predominantly used by automotive manufacturers, construction firms, appliance makers, and other industrial sectors that rely on metals sourcing for their operations. CLF ranked first on our recent list of 12 Stocks That Are About to Explode.

Cleveland-Cliffs Inc. (NYSE:CLF) faced challenging market conditions in 2024, with steel demand at its weakest level since 2010 outside of the COVID-19 period. The company experienced particularly weak demand from the automotive, construction, and industrial sectors in the second half of 2024, leading to the idling of the C6 blast furnace at Cleveland Works. However, entering 2025, the company’s order book has strengthened substantially, with hot-rolled steel lead times extending from 3 weeks to 7 weeks, indicating improved market conditions.

The acquisition of Stelco has strengthened Cleveland-Cliffs Inc. (NYSE:CLF)’s position, with the company expecting to achieve $120 million in synergies by the end of 2025. The company’s cost structure is expected to improve, with average costs projected to decline by $40 per net ton in 2025. The implementation of new 25% tariffs on steel imports from all countries is expected to benefit the company by addressing unfair competition and strengthening domestic producers. With improved automotive demand, better pricing environment, and the integration of Stelco’s primarily non-automotive business, CLF is one of the best growth stocks to consider in 2025, as it is well-positioned for a significantly improved performance later in the year.

Page 10 of 12