5 Best Steel Stocks to Invest In

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

Number of Hedge Fund Holders: 34

Founded in 1847 as a mine operator, Cleveland-Cliffs Inc. (NYSE:CLF) is the largest flat-rolled steel producer and also the largest manufacturer of iron ore pellets in North America. The company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing.

The management Cleveland-Cliffs Inc. (NYSE:CLF) has been making efforts to improve the financial position of the company as well as increase profitability. The company has managed to reduce its net debt and post-retirement liabilities by nearly 45% in the last 2 years.

On the profitability front, the steelmaking COGS has been reduced by $140 per ton while fixed-price auto contracts, which account for a significant portion of the company’s revenue, have been revised up by $115 per ton.

Cleveland-Cliffs Inc. (NYSE:CLF) is the second best steel stock to invest in based on hedge fund sentiment as 34 hedge funds held its shares with a total value of $379 million, as of Q1 2023. Ken Fisher’s Fisher Asset Management was the largest hedge fund shareholder with ownership of 8.2 million shares valued at $149 million.