ArcelorMittal

ArcelorMittal Sa Luxembourg (MT - Snapshot Report), the world's largest steel company, recently easily beat Wall Street's second quarter estimates by 49.11% as steel demand continued to be hot.

On July 30, the company reported net income for the second quarter that rose 115% to $5.8 billion, or $4.20 per share, from $2.7 billion, or $1.97 per share in the second quarter of 2007. Analysts expected $2.81 per share.

Sales jumped 39% to $37.8 billion from $27.2 billion in the year ago period. Total steel shipments also rose year-over-year to 29.8 million metric tonnes compared to 28.7 million metric tonnes in the second quarter of 2007.

MT's Third Quarter Outlook

The company issued third quarter guidance and expects EBITDA to exceed $8.5 billion. First half EBITDA was $13.1 billion. MT expects Flat Carbon Americas, Asia, Africa & CIS and Long Carbon to see improvements in the quarter. Steel Solutions and Services is expected to remain flat. Two other segments, Flat Carbon Europe and Stainless Steel, should see decreases.

MT expects to continue to invest in expanding its business as it looks to spend $7 billion in 2008 on capital expenditures.

ArcelorMittal was a Zacks #1 Rank (Strong Buy) when we last reviewed it on Apr 8 but is now a Zacks #2 Rank (Buy) stock. The company's forward P/E is still only 8.44. Analysts estimate year-over-year 2008 earnings growth of 40.62%. Read the Apr 8 analysis.

Update to Previous Value Zacks Rank Buy Stocks

Anadarko Petroleum Corporation (APC - Analyst Report), the large independent oil and natural gas exploration and production, is drilling with success in the deepwater around the world. The company has surprised on estimates 2 out of the last 4 quarters by 7.94%. Anadarko has a forward P/E of only 9.33. Read the July 29 analysis.

Arrow Electronics, Inc. (ARW - Analyst Report), which provides products and services to industrial and commercial users of electronic components, saw sales increase 6% in the second quarter on strong demand. Its price-to-book (P/B) is 1.04. Read the July 30 analysis.

Forest Oil Corporation (FST - Analyst Report), a North American oil and natural gas exploration and production company, is set to report big profits in the second quarter as crude soars. The company has beaten Wall Street estimates 4 consecutive quarters by an average of 15.22%. Read the July 31 analysis.

EMCOR Group, Inc. (EME - Snapshot Report), which plans and installs infrastructure systems, saw revenues rise 25.6% in the second quarter. The company has a one year return on equity (ROE) of 16.81%. EMCOR's forward P/E is 12.28, under the industry average of 22.55. Read the Aug 1 analysis.