7 Best Stocks for the Next 30 Days

Get them in a free Special Report, and get more Zacks Insights in our free e-newsletter, Profit from the Pros. Every issue includes a fresh Zacks #1 Bull Stock of the Day.

Privacy Policy
Close This Panel X
  • Latest News
  • Most Popular
View All | Scroll Down Scroll Up

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Recent Quotes

No Recent Quote currently available

My Portfolio

My Portfolio Tracker

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts. Set yours up today.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Stocks on the Move 05/21/2013

Company Name Symbol %Change
SCIENTIFIC L SCIL
8.00%
NATUS MEDICA BABY
6.11%
SUMMER INFAN SUMR
6.02%
RADIANT LOGI RLGT
5.32%
NEW ORIENTAL EDU
4.51%

Zacks Rank #1 Strong Buys

Analyst Blog

Print
Share

Underperform on ArcelorMittal

by Zacks Equity Research

December 10, 2012 | Comments : 0 Recommended this article: (0)
MT X

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We are retaining our Underperform recommendation on ArcelorMittal ( MT - Analyst Report ) following its dismal third-quarter 2012 results. The company swung to a loss in the quarter, hurt by weak economic conditions and lower steel pricing.
Adjusted loss per share of 31 cents a share missed the Zacks Consensus Estimate of earnings of 6 cents per share. Revenues slipped nearly 19% year over year to $19,723 million, trailing the Zacks Consensus Estimate of $21,189 million.
The company, in its third quarter call, announced its plans to slash its annual dividend to 20 cents per share in 2013 from 75 cents per share in 2012. The move is expected to offer roughly $850 million in savings next year.
ArcelorMittal remains affected by the challenging economic conditions in Europe. It is also exposed to volatility in steel pricing and tough competition and has significant debt, which is almost equal to its market capitalization.
Increased domestic imports, production ramp ups by peers and increased Chinese production have led to oversupply in the industry, which in turn, is causing a decline in steel prices. The effect of price declines was witnessed across all segments in the third quarter and led to a contraction in the top line.
Moreover, the world economy is struggling and the recessionary conditions persist in Europe. The concerns surrounding the looming U.S. fiscal cliff is also contributing to weak demand and lower steel pricing. Weak construction activity in the U.S. and Europe remains another concern. Weakness in key end markets may hinder the company’s earnings power moving ahead.
In addition, ArcelorMittal is saddled with high debt. Although the company is diligently working toward reducing the amount of debt on its books through divestments, a debt of roughly $23.2 billion against a market capitalization of around $24.3 billion is concerning.
ArcelorMittal, which competes with U.S. Steel Corp. ( X - Analyst Report ) and Tata Steel Limited, retains a Zacks #5 Rank, indicating a short-term Strong Sell rating.

Read the full Analyst Report on MT

Read the full Analyst Report on X

Email Print Share Rate Pos Rate Neg

Disclosure / Disclaimer Link
Read/Post Comments (0) | Recommended this article (0)

Please login to Zacks.com or register to post a comment.
Quick Links

Services

My Account

Resources

Client Support

Follow Us

Facebook

Twitter

Linkedin

RSS

You Tube

Zacks Research is Reported On:

Zacks Investment Research

is an A+ Rated BBB

Accredited Business.

Copyright 2013 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm.

Visit performance for information about the performance numbers displayed above.

NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.