Back to top

Image: Bigstock

ArcelorMittal (MT) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

ArcelorMittal (MT - Free Report) closed the most recent trading day at $32.65, moving -0.82% from the previous trading session. This change lagged the S&P 500's 0.77% loss on the day.

Coming into today, shares of the company had lost 9.11% in the past month. In that same time, the Basic Materials sector lost 2.98%, while the S&P 500 gained 1.55%.

MT will be looking to display strength as it nears its next earnings release. On that day, MT is projected to report earnings of $4.63 per share, which would represent year-over-year growth of 3186.67%. Meanwhile, our latest consensus estimate is calling for revenue of $22.3 billion, up 68.08% from the prior-year quarter.

MT's full-year Zacks Consensus Estimates are calling for earnings of $12.56 per share and revenue of $75.8 billion. These results would represent year-over-year changes of +1731.17% and +42.3%, respectively.

Any recent changes to analyst estimates for MT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MT currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that MT has a Forward P/E ratio of 2.62 right now. Its industry sports an average Forward P/E of 4.64, so we one might conclude that MT is trading at a discount comparatively.

Also, we should mention that MT has a PEG ratio of 1.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MT's industry had an average PEG ratio of 0.2 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

ArcelorMittal (MT) - free report >>

Published in