ArcelorMittal S.A. (MT) expanding its growth trajectory ahead

ArcelorMittal S.A. (NYSE: MT) stock fell -1.01% on Friday to $25.39 against a previous-day closing price of $25.65. With 2.35 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.42 million shares. During the session, the Steel company that operates in wider Basic Materials sector, reached to the highest price of $25.87 whereas the lowest price it dropped to was $25.34. The 52-week range on MT shows that it touched its highest point at $37.87 and its lowest point at $20.86 during that stretch. It currently has a 1-year price target of $39.62. With its current market cap of 22.02 billion, MT has annualized dividend of $0.38 while the current yield stands at 1.50%. Beta for the stock currently stands at 1.96.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MT was up-trending over the past week, with a rise of 5.18%, but this was up by 14.42% over a month. Three-month performance dropped to -7.40% while six-month performance fell -25.98%. The stock lost -30.00% in the past year, while it has lost -20.23% so far this year. A look at the trailing 12-month EPS for MT yields 16.78 with Next year EPS estimates of 5.31. For the next quarter, that number is 1.80. This implies an EPS growth rate of -12.80% for this year and -55.54% for next year.

Float and Shares Shorts:

At present, 924.00 million MT shares are outstanding with a float of 662.16 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.37 million, which was 0.61% higher than short shares on Jun 14, 2022. In addition to Mr. Lakshmi Nivas Mittal B.Com. as the firm’s Exec. Chairman, Mr. Aditya Mittal serves as its CEO & Director.

Institutional Ownership:

Through their ownership of 6.14% of MT’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 3.29% of MT, in contrast to 2.53% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in MT with 0.98% of the stake, GQG Partners LLC holds 8,617,212 shares worth 8,617,212. A second-largest stockholder of MT, Arrowstreet Capital LP, holds 5,349,935 shares, controlling over 0.61% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in MT, holding 3,888,143 shares or 0.44% stake. With a 0.50% stake in MT, the Goldman Sachs GQG Partners Intern is the largest stakeholder. A total of 4,358,898 shares are owned by the mutual fund manager. The Fidelity Advisor Series I -Growth, which owns about 0.33% of MT stock, is the second-largest Mutual Fund holder. It holds 2,896,200 shares valued at 65.45 million. ClearBridge Appreciation Fund holds 0.27% of the stake in MT, owning 2,323,389 shares worth 52.51 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MT since 18 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MT analysts setting a high price target of $49.25 and a low target of $27.31, the average target price over the next 12 months is $37.58. Based on these targets, MT could surge 93.97% to reach the target high and rise by 7.56% to reach the target low. Reaching the average price target will result in a growth of 48.01% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MT will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $14.59 being high and $11.39 being low. For MT, this leads to a yearly average estimate of $12.81. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ArcelorMittal S.A. surprised analysts by $0.27 when it reported $4.24 EPS against a consensus estimate of $3.97. The surprise factor in the prior quarter was $1.08. Based on analyst estimates, the high estimate for the next quarter is $2.63 and the low estimate is $1.56. The average estimate for the next quarter is thus $2.15.

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