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 closed the day down 1.2%. By the end of trading, ArcelorMittal fell 31 cents (-1.9%) to $16.17 on average volume. Throughout the day, 7.9 million shares of ArcelorMittal exchanged hands as compared to its average daily volume of 8.5 million shares. The stock ranged in price between $16.08-$16.50 after having opened the day at $16.45 as compared to the previous trading day's close of $16.48. Other companies within the Basic Materials sector that declined today were: Endeavour International ( END), down 14.1%, Cardero Resources Corporation ( CDY), down 9.9%, Almaden Minerals ( AAU), down 9.1%, and Quicksilver Resources ( KWK), down 8.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $25.74 billion and is part of the metals & mining industry. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are down 4.9% 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 sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

Jim Cramer on the Problem With the Case for More Rate Hikes

Jim Cramer on the Problem With the Case for More Rate Hikes

Video: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

Video: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

'Strong Case for More Rate Hikes,' Says Fed Chair Jerome Powell

'Strong Case for More Rate Hikes,' Says Fed Chair Jerome Powell

Fed Chief Uncertain About Policy-Making as Unemployment Hits 18-Year Low

Fed Chief Uncertain About Policy-Making as Unemployment Hits 18-Year Low

Boeing Rises on $6.6 Billion Deal With FedEx

Boeing Rises on $6.6 Billion Deal With FedEx