Heavy Early Morning Activity On ArcelorMittal (MT)

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 ArcelorMittal ( MT) 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 $65.4 million.
  • MT traded 514,366 shares today in the pre-market hours as of 8:50 AM, representing 11.6% of its average daily volume.

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More details on MT:

ArcelorMittal, Societe Anonyme, together with its subsidiaries, operates as an integrated steel and mining company worldwide. The company operates in six segments: Flat Carbon Americas; Flat Carbon Europe; Long Carbon Americas and Europe; AACIS; Distribution Solutions; and Mining. The stock currently has a dividend yield of 1.2%. Currently there are 5 analysts that rate ArcelorMittal a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for ArcelorMittal has been 4.6 million shares per day over the past 30 days. ArcelorMittal has a market cap of $23.8 billion and is part of the basic materials sector and metals & mining industry. Shares are down 19.8% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ArcelorMittal as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • MT's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 2.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ARCELORMITTAL SA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ARCELORMITTAL SA continued to lose money by earning -$1.46 versus -$2.23 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus -$1.46).
  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.41 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for ARCELORMITTAL SA is currently extremely low, coming in at 8.52%. Regardless of MT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MT's net profit margin of 0.25% is significantly lower than the industry average.
  • Net operating cash flow has decreased to $1,548.00 million or 34.37% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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