According to consensus estimates compiled by Thomson Reuters, ArcelorMittal (MT) has a mean one-year price target of $9.07. That represents a 14.5% upside compared to its closing price on February 3, 2017.
In contrast, United States Steel (X) is trading at price levels similar to its consensus one-year price target. AK Steel (AKS) is trading 18.9% below its consensus one-year price target. Steel Dynamics (STLD) is trading 19.8% below its consensus one-year price target.
Of the seven analysts polled by Thomson Reuters, 42.0% rate ArcelorMittal (MT) a “buy” or equivalent. Only one analyst has rated MT a “sell,” while the remaining 42.0% have rated the stock a “hold.”
Looking at other steel companies, 33.0% of analysts rate United States Steel a “buy” or equivalent, while 17.0% rate it a “sell” or equivalent. The stock has received a “hold” recommendation from 50.0% of analysts polled by Thomson Reuters.
AK Steel has received the maximum “hold” recommendations in our coverage of steel stocks. Two of three analysts rate the stock a “hold.”
Steel Dynamics (STLD) seems to be Wall Street’s favorite steel play (XME). The stock hasn’t received any “sell” recommendations. Of the 16 analysts surveyed by Thomson Reuters, 12 rate the stock a “buy” or equivalent, and the remaining four rate it a “hold.”
Be sure to visit Market Realist’s Steel page for a detailed analysis of ArcelorMittal’s 4Q16 earnings.
You can also read How Will the Steel Industry Fare in 2017? to explore the steel industry’s 2017 outlook.