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ArcelorMittal (MT) Gains As Market Dips: What You Should Know

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ArcelorMittal (MT - Free Report) closed at $31.92 in the latest trading session, marking a +0.57% move from the prior day. This change outpaced the S&P 500's 0.11% loss on the day.

Coming into today, shares of the company had gained 4.44% in the past month. In that same time, the Basic Materials sector gained 6.23%, while the S&P 500 gained 4.61%.

Investors will be hoping for strength from MT as it approaches its next earnings release, which is expected to be November 11, 2021. On that day, MT is projected to report earnings of $4.55 per share, which would represent year-over-year growth of 3133.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.44 billion, up 69.15% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.32 per share and revenue of $77.85 billion, which would represent changes of +1829.87% and +46.14%, respectively, from the prior year.

Any recent changes to analyst estimates for MT should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 3.18% higher. MT is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, MT is currently trading at a Forward P/E ratio of 2.38. This valuation marks a discount compared to its industry's average Forward P/E of 4.52.

We can also see that MT currently has a PEG ratio of 1.56. 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. The Steel - Producers was holding an average PEG ratio of 0.17 at yesterday's closing price.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.

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