Stocks having Bumpy Ride for the Day: Cliffs Natural Resources Inc. (NYSE:CLF), Rowan Companies plc (NYSE:RDC)

Cliffs Natural Resources Inc. (NYSE:CLF) persists its position slightly strong in context of buying side, while shares price surged 0.57% during latest trading session.

Cliffs has outperformed the Zacks categorized Mining-Iron industry over the past year. The company’s shares have gained around 563.7% over this period, compared with roughly 315.3% gain recorded by the industry. Moreover, Cliffs entered into multiple contracts with Minnesota Power, a utility division of ALLETE Inc., in May 2016 to purchase power in the long term. The contract will enable Cliffs to enhance its future competitiveness and also improve its cash production costs over the long term. The new contract allows Cliffs to supply up to 10 million long tons of pellets to ArcelorMittal USA. The supplied iron ore will meet the entire requirement at ArcelorMittal’s Indiana Harbor West and Cleveland Works steelmaking facilities, while continuing the current level of pellet supply to ArcelorMittal’s Indiana Harbor East facility. The mutually beneficial contract reinforces a strong business relation between the two companies.

Analysts Practices; to watch unbiased undervalue securities, there is need to see following technical rations. CLF holds price to earnings ratio of 26.61 that presents much better indication for a stock’s value than the market price alone. Based on historic views, the average P/E ratio in market fluctuates between 15 to 25, but alone low P/E ratio does not necessarily mean that a company is undervalue.

Narrow down focus to other ratios, the co has current ratio of 2.20 that indicates if CLF lies in 1.3% to 3% then it is acceptable for both active and passive investors, but sometimes its varies industry to industry. Generally, it indicates good short-term financial strength. Street is more conscious on this after SunEdison, Inc. case. To make strengthen these views, the active industry firm has Quick Ratio of 0.90, which indicates firm has sufficient short-term assets to cover its immediate liabilities.

Rowan Companies plc (NYSE:RDC) also run on active notice, stock price plummeted -1.33% after traded at $19.28 in most recent trading session.

RDC has price to earnings ratio of 5.21 and the price to current year EPS stands at 177.80%. Whereas the traders who further want to see about this, may be interested to see Price to next year’s EPS that would be -130.50%.  Moving toward ratio analysis, it has current ratio of 2.20 and quick ratio was calculated as 2.20. The debt to equity ratio appeared as 0.51 for seeing its liquidity position.

Taking notice on volatility measures, price volatility of stock was 2.98% for a week and 3.44% for a month. The price volatility’s Average True Range for 14 days was 0.74. On these bases, analysts would recommend this stock as an “Active Revolving Stocks.” The firm attains analyst recommendation of 2.90 out of 1-5 scale with week’s performance of -1.18%. RDC’s institutional ownership was registered as 89.90%, while insider ownership was 0.70%.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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