Cleveland-Cliffs Inc ( CLF ) shares are trading higher Monday after the company was selected to receive $575 million in investments from the U.S. Department of Energy (DOE).

What Happened: Cleveland-Cliffs ( CLF ) on Monday announced that two of its projects were selected for up to $575 million in total funding from the DOE to pursue two decarbonization investments at Middletown Works in Ohio and Butler Works in Pennsylvania.

The funding is being made available through the DOE’s Industrial Demonstrations Program funded through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. The projects are expected to allow for substantial reductions in greenhouse gas emissions across the Cliffs’ footprint and are also expected to drive down operating costs.

“We are grateful for the support of the Department of Energy and their recognition of Cleveland-Cliffs’ strong leadership in steel decarbonization. Through these selections, DOE recognized and rewarded Cleveland-Cliffs’ track record of successfully executing large capital projects that result in operational efficiencies and lower GHG emissions,” said Lourenco Goncalves, chairman, president and CEO of Cleveland-Cliffs ( CLF ).

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CLF Stock Prediction 2024

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Cleveland-Cliffs' ( CLF ) revenue has grown at an average rate of 114.94% annually over the past five years. The average one-year price target from analysts is $19.50, representing an expected -9.93% downside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Cleveland-Cliffs ( CLF ) have seen an annualized return of 11.91%, outperforming the S&P 500 index by 1.69%. This compares to 7.69% growth in the overall Materials sector. Cleveland-Cliffs ( CLF ) has a beta of 1.97.

CLF Price Action: Cleveland-Cliffs ( CLF ) stock was up 1.36% at $21.55 at the time of publication, according to Benzinga Pro.