ArcelorMittal (MT) Is Today's Strong On High Volume Stock
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified ArcelorMittal as such a stock due to the following factors:
- MT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.9 million.
- MT has traded 2.4 million shares today.
- MT is trading at 2.09 times the normal volume for the stock at this time of day.
- MT is trading at a new high 4.05% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on MT:
ArcelorMittal, together with its subsidiaries, operates as an integrated steel and mining company worldwide. The company operates through five segments: NAFTA; Brazil; Europe; Africa & Commonwealth of Independent States; and Mining. It produces finished and semi-finished steel products. Currently there are 3 analysts that rate ArcelorMittal a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for ArcelorMittal has been 16.2 million shares per day over the past 30 days. ArcelorMittal has a market cap of $13.4 billion and is part of the basic materials sector and metals & mining industry. Shares are up 28.7% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates ArcelorMittal as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk.
Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, ARCELORMITTAL SA's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ARCELORMITTAL SA is currently extremely low, coming in at 6.92%. It has decreased from the same quarter the previous year.
- MT has underperformed the S&P 500 Index, declining 17.96% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- MT's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.33 is very low and demonstrates very weak liquidity.
- Despite the weak revenue results, MT has outperformed against the industry average of 45.3%. Since the same quarter one year prior, revenues fell by 21.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full ArcelorMittal Ratings Report.
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