ArcelorMittal (MT) Surges 5.8%: Is This an Indication of Further Gains?
ArcelorMittal (MT) shares soared 5.8% in the last trading session to close at $28.69. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13% gain over the past four weeks.
ArcelorMittal’s rally appears to reflect the deal between Nippon Steel and U.S. Steel, under which Nippon Steel will acquire U.S. Steel for approximately $14.1 billion. ArcelorMittal was reportedly one of the bidders for U.S. Steel.
This company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of -67.9%. Revenues are expected to be $15.06 billion, down 10.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For ArcelorMittal, the consensus EPS estimate for the quarter has been revised 12% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ArcelorMittal is part of the Zacks Steel - Producers industry. Schnitzer Steel (RDUS), another stock in the same industry, closed the last trading session 1.4% lower at $29.12. RDUS has returned 17.7% in the past month.
Schnitzer Steel's consensus EPS estimate for the upcoming report has changed +92.9% over the past month to -$0.71. Compared to the company's year-ago EPS, this represents a change of -61.4%. Schnitzer Steel currently boasts a Zacks Rank of #3 (Hold).
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