Stock Market Today, Oct. 19: Cleveland-Cliffs Surges on Stronger Q3 Results and Raised 2027 EBITDA Outlook

On October 19, Cleveland-Cliffs (CLF) experienced a significant surge in its stock price, closing at $14.10, an increase of 16.34%. The company reported stronger third-quarter results and raised its EBITDA outlook, which led to this notable gain.

Investors are closely monitoring the steel pricing and signed contracts to determine if they can support the updated 2027 EBITDA target. The trading volume reached 84.1 million shares, approximately 324% higher than the three-month average of 19.9 million shares.

Among other steel manufacturing and flat-rolled iron/steel production peers, Nucor (NUE) closed at $260.75, up 1.74%, and Steel Dynamics (SD) closed at $245.17, up 1.92%. These gains in steel stocks were attributed to stronger pricing and earnings momentum.

Cleveland-Cliffs reported an adjusted EBITDA of $612 million, more than double the previous quarter's figure. The stock's positive movement was driven by the improved margin recovery. Management is optimistic about robust steel pricing and demand, projecting that adjusted EBITDA will exceed $4 billion in 2027.

The earnings per share exceeded estimates, which further bolstered the performance of other domestic steel stocks. However, despite the sector's overall growth, investors need to watch out for company-specific issues. After the market close, Steel Dynamics reported record steel shipments, but its shares declined as earnings fell short of estimates due to charges and start-up issues from its new aluminum mill operations.

North American steel giant Nucor is scheduled to report its earnings next week on October 27. If there are no company-specific surprises, investors can anticipate a solid report similar to Cleveland-Cliffs' strong performance today.