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 2%. By the end of trading, ArcelorMittal fell 43 cents (-2.4%) to $17.45 on average volume. Throughout the day, 8.4 million shares of ArcelorMittal exchanged hands as compared to its average daily volume of 7.9 million shares. The stock ranged in price between $17.27-$17.92 after having opened the day at $17.80 as compared to the previous trading day's close of $17.88. Other companies within the Metals & Mining industry that declined today were: Molycorp ( MCP), down 10.3%, Tanzanian Royalty Exploration Corporation ( TRX), down 7.8%, Tasman Metals ( TAS), down 7.5%, and McEwen Mining ( MUX), down 7.1%.
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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 $27.8 billion and is part of the basic materials sector. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 2.7% year to date as of the close of trading on Wednesday. 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 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.

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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