ArcelorMittal (MT) Price Technical Analysis for December 07, 2018

On a downside, ArcelorMittal (NYSE:MT) is likely to find some support, which begins at $21.67. On the upside, the stock will test short term resistance at around $22.27. The failure to get near-term support could push it to $21.27. Its 50 day simple moving average (SMA 50) price is $26.26 and its 200-day simple moving average (SMA 200) price is $30.52. The company’s stock currently has a total float of 646.15M shares. Its weekly volatility is hovering around 2.72% and felt 2.65% volatility in price over a month.

MT stock has been range bound between the range of $21.48 and $21.48 during the whole day. The stock finished Thursday at $22.06. The -3.42% downtrend forced its market value to reach at $22.37B. The price went up as high as $21.48 before retreating. Trading activity significantly improved as the volume at ready counter increased to 3,891,802 shares versus 2,921,320 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,004,098 shares. The stock is now 0.87% above against its bear-market low of $21.87 on December 06, 2018. It has retreated -69.99% since it’s 52-week high of $37.5 reached in January. Now the market price is down -27.05% on the year and down -31.72% YTD.

Wall Street’s most bullish ArcelorMittal (NYSE:MT) analysts are predicting the share price to blow past $50.06 per share during the next 12 months. The current median share price forecast by them is $38.15, suggesting that the stock could increase 72.94% in that time frame. The average price target of $37.01 calls for a nearly 67.77% increase in the stock price.

It had seen a change in price target from analysts at Cowen, who reiterated the stock at Market Perform on May 15 but moved PT from $35 to $38. Analysts at BofA/Merrill, shed their negative views on February 20 by lifting it fromNeutral to Buy. The stock won favor of BofA/Merrill analysts who expressed their confidence in it using an upgrade from Underperform to Neutral on January 10. Cowen, reiterated their call for Market Perform, on November 13. On the other hand, they had set new target price to $32 versus $27.

When looking at valuations, ArcelorMittal (MT) has a cheap P/E of 4.51x as compared to industry average of 24.14x. Moreover, it trades for 4.85 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.55x price/book and 0.3x price/sales. Compared to others, ArcelorMittal is in a different league with regards to profitability, having net margins of 6.6%. To put some perspective around this, the industry’s average net margin is 2.54%. MT’s ROE is 12.5%, which is also considerably better than the industry’s ROE of 4.38%. It’s also very liquid in the near term, with a current ratio of 1.4. The stock has a debt/capital of 0.32.

Shares of ArcelorMittal (MT) have dropped -8.2% since the company’s last earnings report. Over the past 8 fiscal quarters, ArcelorMittal (NYSE:MT) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. MT last reported earnings on November 01, 2018 when it released Jun-18 results that exceeded expectations. The company raked in $2.19 per share, -95.34% change on the same period last year. That was better than consensus for $1.49. Revenue for the recent quarter stood at $20 billion, up 16% on last year and below the $20.17 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $76.09 billion to $79.04 billion, which should be compared with $67.3 billion generated last year. EPS is seen in a range of $2.87 to $5.61, against the $3.62 reported a year ago.