ArcelorMittal (MT) Dips More Than Broader Markets: What You Should Know
In the latest trading session, ArcelorMittal (MT) closed at $27.01, marking a -0.41% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, added 0.09%.
Investors will be hoping for strength from MT as it approaches its next earnings release. The company is expected to report EPS of $1.62, up 370% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.57 billion, up 4.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $58.18 billion, which would represent changes of +714.29% and +9.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 5.11% higher within the past month. MT currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, MT is currently trading at a Forward P/E ratio of 5.7. For comparison, its industry has an average Forward P/E of 9.47, which means MT is trading at a discount to the group.
It is also worth noting that MT currently has a PEG ratio of 0.37. 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 0.93 as of yesterday's close.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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