ArcelorMittal SA (MT): Today's Featured Basic Materials 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 Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole was unchanged today. By the end of trading, ArcelorMittal fell 31 cents (-1.8%) to $16.98 on heavy volume. Throughout the day, 14.6 million shares of ArcelorMittal exchanged hands as compared to its average daily volume of 7.1 million shares. The stock ranged in price between $16.90-$17.37 after having opened the day at $17.33 as compared to the previous trading day's close of $17.29. Other companies within the Basic Materials sector that declined today were: Uranium Resources ( URRE), down 9.6%, Cubic Energy ( QBC), down 8.6%, Kingold Jewelry ( KGJI), down 7.8%, and United States Antimony Corporation ( UAMY), down 7.7%.
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ArcelorMittal, together with its subsidiaries, operates as an integrated steel and mining company with presence in 60 countries worldwide. ArcelorMittal has a market cap of $27.14 billion and is part of the metals & mining industry. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 0.3% year to date as of the close of trading on Friday. Currently there are three analysts that rate ArcelorMittal a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates ArcelorMittal as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

On the positive front, Andatee China Marine Fuel Services Corporat ( AMCF), up 46%, Aurizon Mines ( AZK), up 32.4%, GeoPetro Resources Company ( GPR), up 20.6%, and Gasco Energy ( GSX), up 16.8%, were all gainers within the basic materials sector with Noble Corporation ( NE) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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