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ArcelorMittal (MT) Gains But Lags Market: What You Should Know

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ArcelorMittal (MT - Free Report) closed the most recent trading day at $25.52, moving +0.08% from the previous trading session. This move lagged the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq lost 0.38%.

Prior to today's trading, shares of the steel producer had lost 16.17% over the past month. This has lagged the Basic Materials sector's loss of 9.35% and the S&P 500's loss of 6.76% in that time.

Wall Street will be looking for positivity from MT as it approaches its next earnings report date. This is expected to be January 30, 2019. Meanwhile, our latest consensus estimate is calling for revenue of $20.01 billion, up 12.99% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.35 per share and revenue of $78.51 billion. These totals would mark changes of +0.19% and +14.31%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.74% lower. MT is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note MT's current valuation metrics, including its Forward P/E ratio of 4.76. This represents a discount compared to its industry's average Forward P/E of 9.71.

Investors should also note that MT has a PEG ratio of 1.32 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Steel - Producers industry currently had an average PEG ratio of 0.64 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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