ArcelorMittal SA (MT): Today's Featured Metals & Mining Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

ArcelorMittal ( MT) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day down 1.6%. By the end of trading, ArcelorMittal fell 16 cents (-1.1%) to $14.82 on average volume. Throughout the day, 5.9 million shares of ArcelorMittal exchanged hands as compared to its average daily volume of 6.4 million shares. The stock ranged in price between $14.75-$15.13 after having opened the day at $15 as compared to the previous trading day's close of $14.98. Other companies within the Metals & Mining industry that declined today were: Minco Gold Corporation ( MGH), down 9.4%, Alpha Natural Resources ( ANR), down 7.8%, Stillwater Mining Company ( SWC), down 7.3%, and China Shen Zhou Mining & Resources ( SHZ), down 6.8%.
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ArcelorMittal, together with its subsidiaries, operates as an integrated steel and mining company worldwide. ArcelorMittal has a market cap of $22.68 billion and is part of the basic materials sector. The company has a P/E ratio of 16.3, below the average metals & mining industry P/E ratio of 104.6 and below the S&P 500 P/E ratio of 17.7. Shares are down 17.6% year to date as of the close of trading on Thursday. Currently there are four analysts that rate ArcelorMittal a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates ArcelorMittal as a hold. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the metals & mining industry could consider SPDR S&P Metals & Mining ETF ( XME) while those bearish on the metals & mining industry could consider PowerShares DB Base Metals Sht ETN ( BOS).

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