MT Stock News: Negative Expectations On Iron Ore And Coal Caused ArcelorMittal To Become Oversold

MT Stock News: Summary

  • Weak first quarter with further staggering losses.MT stock news
  • Iron ore and coal are not stabilizing as advertised.
  • Algorithmic evaluation of ArcelorMittal is bearish despite everything.

ArcelorMittal (NYSE: MT) produced double the amount of steel its nearest competitor Nippon Steel & Sumitomo Metal (NISTUF) did in 2014. While most recent financial bookings compare 1Q2015 to 1Q2014, a deeper look reveals that quarter to quarter data is not as glamorous. Iron ore shipments are down to their lowest point in the last 4 quarters. Steel shipments are up shedding some light of hope. Sales are at a 5Q low and EBITDA naturally is down as well. The company suffered heavy losses of $728 million in Q1, slightly down in comparison to 4Q2014.

Algorithmic Analysis

MT Stock News: The algorithms identified it as the 2nd strongest signal from our aggressive stock universe. The only way that the algorithm would produce a strong bullish signal on a stock which has a bearish signal most of its core dependencies is when it identifies it as being oversold and undervalued. Unlike the commodities themselves, ArcelorMittal is very predictable with a 1 year score of 0.56. The high positioning on the aggressive table hints to a potential upside of over 20%. However, if this materializes it could quickly flip and go back down if coal and iron ore spot prices continue to decline.