Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market mover with heavy 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 $61.5 million.
- MT traded 506,128 shares today in the pre-market hours as of 8:54 AM, representing 11.7% of its average daily volume.
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More details on MT:
Q2-10: Reported $3bn EBITDA on 22.8mton shipments. guided to $2.1-2.5bn EBITDA for Q3 driven by lower volumes (guided to 70% operating rate), higher costs and stable pricing. Announced potential spin-off of stainless biz. The stock currently has a dividend yield of 1.2%. Currently there are 3 analysts that rate ArcelorMittal a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for ArcelorMittal has been 5.7 million shares per day over the past 30 days. ArcelorMittal has a market cap of $21.3 billion and is part of the basic materials sector and metals & mining industry. Shares are down 21.8% year to date as of the close of trading on Monday.
rates ArcelorMittal as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 176.8% when compared to the same quarter one year ago, falling from $1,016.00 million to -$780.00 million.
- 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 8.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.86% is significantly below that of the industry average.
- The share price of ARCELORMITTAL SA has not done very well: it is down 5.64% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- ARCELORMITTAL SA has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ARCELORMITTAL SA swung to a loss, reporting -$2.38 versus $0.86 in the prior year. This year, the market expects an improvement in earnings (-$0.45 versus -$2.38).
- You can view the full ArcelorMittal Ratings Report.