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ArcelorMittal (MT) Outpaces Stock Market Gains: What You Should Know

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ArcelorMittal (MT - Free Report) closed at $30.26 in the latest trading session, marking a +0.83% move from the prior day. This change outpaced the S&P 500's 0.34% gain on the day.

Prior to today's trading, shares of the company had lost 7.66% over the past month. This has lagged the Basic Materials sector's loss of 4.99% and the S&P 500's gain of 2.71% in that time.

MT will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2021. Meanwhile, our latest consensus estimate is calling for revenue of $18.26 billion, up 66.39% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.70 per share and revenue of $64.97 billion. These totals would mark changes of +1229.87% and +21.96%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.28% higher. MT currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, MT currently has a Forward P/E ratio of 3.45. For comparison, its industry has an average Forward P/E of 6.38, which means MT is trading at a discount to the group.

Also, we should mention that MT has a PEG ratio of 2.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Steel - Producers was holding an average PEG ratio of 0.27 at yesterday's closing price.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MT in the coming trading sessions, be sure to utilize Zacks.com.


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