Materials Sector Poised for Growth Amid Industrial Revolution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2026
0mins
Source: Fool
- Sector Performance: The materials sector, accounting for only 1.9% of the S&P 500, has outperformed the index by 700 basis points so far in 2026, indicating strong investment returns and attracting increased investor interest.
- Steel Industry Transformation: Cleveland-Cliffs, the largest U.S. producer of flat-rolled steel, has seen its stock price rise nearly 50% over the past year, and its partnership with Palantir Technologies to leverage AI in logistics and manufacturing enhances its market position.
- Gas Supplier Advantage: Air Products and Chemicals, with a $9 billion order backlog, has established itself as a major supplier of industrial gases needed for electronic component manufacturing, and its stock has risen 23.5% year-to-date, reflecting strong execution and potential for earnings growth.
- Helium Market Challenges: Linde, forming an oligopoly with Air Products in the helium market, faces supply constraints due to the war in Iran and Western sanctions, yet its long-term commitments position it well to meet helium demand, potentially driving long-term share appreciation.
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Analyst Views on CLF
Wall Street analysts forecast CLF stock price to fall
9 Analyst Rating
2 Buy
5 Hold
2 Sell
Hold
Current: 13.710
Low
5.75
Averages
12.78
High
17.00
Current: 13.710
Low
5.75
Averages
12.78
High
17.00
About CLF
Cleveland-Cliffs Inc. is a steel producer with a focus on value-added sheet products, particularly for the automotive industry in North America. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Its offering includes advanced high-strength steel, hot-dipped galvanized, aluminized, galvalume, electrogalvanized, galvanneal, hot-rolled coil (HRC), cold-rolled coil, plate, grain oriented electrical steel (GOES), non-oriented electrical steel (NOES), stainless steels, tool and die, stamped components, and slabs. Its Other Businesses primarily include the Tubular and Tooling and Stamping segments that provide customer solutions with carbon and stainless-steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components and complex assemblies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cleveland-Cliffs Receives Upgrade to Hold Amid Price Target Adjustment
- Rating Upgrade: GLJ Research upgraded Cleveland-Cliffs from Sell to Hold with a price target of approximately $15, reflecting a significant change in evidence since last month's bearish note, despite a 0.8% decline in stock price on Tuesday.
- Market Dynamics: Analyst Gordon L. Johnson notes that hot-rolled coil prices have continued to rise during the expected weakest period, indicating a supply-led squeeze, with an unusually tight physical market colliding with a structural import wall, providing more price support than anticipated.
- Demand Analysis: Current underlying demand is running at 1.0x-1.25x normal levels, contrasting sharply with the 3x-4x post-stimulus surge of 2021, suggesting that the market is supply-driven, which may keep prices firm in the near future.
- Policy Risk Assessment: Johnson sees little risk of President Trump easing steel tariffs this year, as it could be viewed as a political liability in key Senate races in states like Ohio and Michigan.
See More
U.S. Stock Futures Rise as Market Sentiment Recovers
- Market Sentiment Recovery: After a significant drop on Friday, U.S. stock futures rose on Monday, with the S&P 500 gaining 0.30% despite the Dow Jones Industrial Average closing down 0.17%, indicating a slight improvement in investor sentiment.
- Rising Interest Rates Impact: The S&P 500 opened with its largest gap in eight weeks, but the rise in long-term Treasury yields, with the 30-year bond closing at 5.04%, weakened market support, preventing bulls from maintaining their initial gains.
- Oil Price Volatility: Global oil inventories continue to decline despite ceasefire efforts, with Brent crude closing at $94.22, up 1.21%, reflecting market expectations for rising oil prices that could influence investment decisions in related sectors.
- Cryptocurrency Market Recovery: Bitcoin rebounded to nearly $64,200 after shedding approximately $235 billion in market value, indicating market stabilization, although investor sentiment remains cautious, which may affect future investment flows.
See More
Screening Attractive Stocks in the $2B to $10B Market Cap Range
- Attractive Stock Screening: Companies with market capitalizations between $2B and $10B, such as Aris Mining Corporation (ARIS), Avient (AVNT), and Compañía de Minas Buenaventura S.A.A. (BVN), are highlighted for their relative valuation advantages, attracting the attention of value-oriented investors.
- Valuation Grades: According to Seeking Alpha's valuation grades, these companies all received a B rating, indicating they are relatively cheap within the materials sector, making them suitable candidates for investors seeking opportunities.
- Valuation Metrics Analysis: The valuation grades are based on various metrics, including P/E, PEG, EV/Sales, and EV/EBITDA, using both current and forward estimates to provide a comprehensive assessment of the companies' relative values.
- Industry Outlook: These companies not only have solid valuation foundations but may also perform well amid future market fluctuations, positioning them as focal points for investor interest.
See More
Cleveland-Cliffs Named 2025 GM Supplier of the Year
- Honor Recognition: Cleveland-Cliffs was awarded the 2025 Supplier of the Year by General Motors at its 34th annual Supplier of the Year event, being the only North American steel producer recognized this year, highlighting its leadership in the automotive steel supply chain.
- Strategic Partnership: GM's Senior Vice President Shilpan Amin emphasized that suppliers' outstanding performance is crucial for vehicle development, and Cleveland-Cliffs' support in new technology and execution enables GM to respond faster and compete more effectively in the market.
- Commitment to Excellence: Cleveland-Cliffs' CEO Lourenco Goncalves stated that receiving this award reflects the company's commitment to providing a secure, reliable domestic supply chain and best-in-class steel products in North America, further solidifying its market position.
- Global Impact: The 2025 GM Supplier Awards recognized 103 suppliers from 14 countries, underscoring Cleveland-Cliffs' exceptional performance in key areas such as safety, innovation, and customer support, showcasing its significant role in the global automotive industry.
See More
Materials Sector Poised for Growth Amid Industrial Revolution
- Sector Performance: The materials sector, accounting for only 1.9% of the S&P 500, has outperformed the index by 700 basis points so far in 2026, indicating strong investment returns and attracting increased investor interest.
- Steel Industry Transformation: Cleveland-Cliffs, the largest U.S. producer of flat-rolled steel, has seen its stock price rise nearly 50% over the past year, and its partnership with Palantir Technologies to leverage AI in logistics and manufacturing enhances its market position.
- Gas Supplier Advantage: Air Products and Chemicals, with a $9 billion order backlog, has established itself as a major supplier of industrial gases needed for electronic component manufacturing, and its stock has risen 23.5% year-to-date, reflecting strong execution and potential for earnings growth.
- Helium Market Challenges: Linde, forming an oligopoly with Air Products in the helium market, faces supply constraints due to the war in Iran and Western sanctions, yet its long-term commitments position it well to meet helium demand, potentially driving long-term share appreciation.
See More
Cleveland-Cliffs Partners with Palantir for AI Integration
- AI Technology Partnership: Cleveland-Cliffs has signed a three-year agreement with Palantir to integrate AI software into production planning, order entry, and daily operations, aiming to enhance manufacturing efficiency amid intensifying global steel competition.
- Data Integration Improvement: By implementing Palantir's platform, Cleveland-Cliffs seeks to improve data integration and coordination across facilities, which is expected to optimize decision-making processes and enhance overall operational performance, driving the company's modernization efforts.
- Complexity Management: CEO Lourenco Goncalves emphasized that the complexity of integrated steelmaking allows Palantir's platform to provide solutions that surpass human-driven processes, demonstrating the company's strategic commitment to boosting productivity and performance.
- Industry Transformation Signal: This partnership represents not only an incremental step in Cleveland-Cliffs' productivity enhancement efforts but also reflects a broader trend of traditional industrial players increasingly relying on AI technology to gain operational advantages and adapt to rapidly changing market conditions.
See More
Cleveland-Cliffs Receives Upgrade to Hold Amid Price Target Adjustment
- Rating Upgrade: GLJ Research upgraded Cleveland-Cliffs from Sell to Hold with a price target of approximately $15, reflecting a significant change in evidence since last month's bearish note, despite a 0.8% decline in stock price on Tuesday.
- Market Dynamics: Analyst Gordon L. Johnson notes that hot-rolled coil prices have continued to rise during the expected weakest period, indicating a supply-led squeeze, with an unusually tight physical market colliding with a structural import wall, providing more price support than anticipated.
- Demand Analysis: Current underlying demand is running at 1.0x-1.25x normal levels, contrasting sharply with the 3x-4x post-stimulus surge of 2021, suggesting that the market is supply-driven, which may keep prices firm in the near future.
- Policy Risk Assessment: Johnson sees little risk of President Trump easing steel tariffs this year, as it could be viewed as a political liability in key Senate races in states like Ohio and Michigan.
See More
U.S. Stock Futures Rise as Market Sentiment Recovers
- Market Sentiment Recovery: After a significant drop on Friday, U.S. stock futures rose on Monday, with the S&P 500 gaining 0.30% despite the Dow Jones Industrial Average closing down 0.17%, indicating a slight improvement in investor sentiment.
- Rising Interest Rates Impact: The S&P 500 opened with its largest gap in eight weeks, but the rise in long-term Treasury yields, with the 30-year bond closing at 5.04%, weakened market support, preventing bulls from maintaining their initial gains.
- Oil Price Volatility: Global oil inventories continue to decline despite ceasefire efforts, with Brent crude closing at $94.22, up 1.21%, reflecting market expectations for rising oil prices that could influence investment decisions in related sectors.
- Cryptocurrency Market Recovery: Bitcoin rebounded to nearly $64,200 after shedding approximately $235 billion in market value, indicating market stabilization, although investor sentiment remains cautious, which may affect future investment flows.
See More
Screening Attractive Stocks in the $2B to $10B Market Cap Range
- Attractive Stock Screening: Companies with market capitalizations between $2B and $10B, such as Aris Mining Corporation (ARIS), Avient (AVNT), and Compañía de Minas Buenaventura S.A.A. (BVN), are highlighted for their relative valuation advantages, attracting the attention of value-oriented investors.
- Valuation Grades: According to Seeking Alpha's valuation grades, these companies all received a B rating, indicating they are relatively cheap within the materials sector, making them suitable candidates for investors seeking opportunities.
- Valuation Metrics Analysis: The valuation grades are based on various metrics, including P/E, PEG, EV/Sales, and EV/EBITDA, using both current and forward estimates to provide a comprehensive assessment of the companies' relative values.
- Industry Outlook: These companies not only have solid valuation foundations but may also perform well amid future market fluctuations, positioning them as focal points for investor interest.
See More
Cleveland-Cliffs Named 2025 GM Supplier of the Year
- Honor Recognition: Cleveland-Cliffs was awarded the 2025 Supplier of the Year by General Motors at its 34th annual Supplier of the Year event, being the only North American steel producer recognized this year, highlighting its leadership in the automotive steel supply chain.
- Strategic Partnership: GM's Senior Vice President Shilpan Amin emphasized that suppliers' outstanding performance is crucial for vehicle development, and Cleveland-Cliffs' support in new technology and execution enables GM to respond faster and compete more effectively in the market.
- Commitment to Excellence: Cleveland-Cliffs' CEO Lourenco Goncalves stated that receiving this award reflects the company's commitment to providing a secure, reliable domestic supply chain and best-in-class steel products in North America, further solidifying its market position.
- Global Impact: The 2025 GM Supplier Awards recognized 103 suppliers from 14 countries, underscoring Cleveland-Cliffs' exceptional performance in key areas such as safety, innovation, and customer support, showcasing its significant role in the global automotive industry.
See More
Materials Sector Poised for Growth Amid Industrial Revolution
- Sector Performance: The materials sector, accounting for only 1.9% of the S&P 500, has outperformed the index by 700 basis points so far in 2026, indicating strong investment returns and attracting increased investor interest.
- Steel Industry Transformation: Cleveland-Cliffs, the largest U.S. producer of flat-rolled steel, has seen its stock price rise nearly 50% over the past year, and its partnership with Palantir Technologies to leverage AI in logistics and manufacturing enhances its market position.
- Gas Supplier Advantage: Air Products and Chemicals, with a $9 billion order backlog, has established itself as a major supplier of industrial gases needed for electronic component manufacturing, and its stock has risen 23.5% year-to-date, reflecting strong execution and potential for earnings growth.
- Helium Market Challenges: Linde, forming an oligopoly with Air Products in the helium market, faces supply constraints due to the war in Iran and Western sanctions, yet its long-term commitments position it well to meet helium demand, potentially driving long-term share appreciation.
See More
Cleveland-Cliffs Partners with Palantir for AI Integration
- AI Technology Partnership: Cleveland-Cliffs has signed a three-year agreement with Palantir to integrate AI software into production planning, order entry, and daily operations, aiming to enhance manufacturing efficiency amid intensifying global steel competition.
- Data Integration Improvement: By implementing Palantir's platform, Cleveland-Cliffs seeks to improve data integration and coordination across facilities, which is expected to optimize decision-making processes and enhance overall operational performance, driving the company's modernization efforts.
- Complexity Management: CEO Lourenco Goncalves emphasized that the complexity of integrated steelmaking allows Palantir's platform to provide solutions that surpass human-driven processes, demonstrating the company's strategic commitment to boosting productivity and performance.
- Industry Transformation Signal: This partnership represents not only an incremental step in Cleveland-Cliffs' productivity enhancement efforts but also reflects a broader trend of traditional industrial players increasingly relying on AI technology to gain operational advantages and adapt to rapidly changing market conditions.
See More
