ArcelorMittal SA (NYSE:MT) Stock Rebounds to End Year After Iron Ore Prices Soar

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After a horrible year for shares of ArcelorMittal SA (ADR) (NYSE:MT) in 2015, it looks as though investors who are long in the company may see some hope heading into the New Year. Today, the stock is trading up after the prices of iron ore have seemingly soared.

2015 represented a year in which ArcelorMittal SA (ADR) (NYSE:MT) shares followed the price of iron ore closely, and as the commodity fell to levels unseen in a decade, shares of the stock also tanked. Now, however, iron ore prices have jumped approximately 12% after hitting its bottom, and is up 2.2% today, carrying shares of ArcelorMittal up higher as well. The main reason why iron ore is going up in price is because of expectations that China will see its steel sector improve in the coming year.

The stock is up 2.98% or $0.12 today, hitting $4.32 per share. About 4.76 million shares traded hands. MT has declined 62.30% since May 27, 2015 and is downtrending. It has underperformed the S&P500 by 60.03%.

From a total of 8 analysts covering Arcelormittal (NYSE:MT) stock, 3 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 38% of the ratings are positive. The highest target price is $13 while the lowest target price is $4. The mean of all analyst targets is $7.75 which is 79.40% above today’s ($4.32) stock price. Arcelormittal was the topic of 15 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets downgraded shares on December 18 to a “Sector Perform” rating. Citigroup downgraded MT stock in a recent report from December 2 to a “Neutral” rating. Finally, Berenberg initiated the stock with a “Buy” rating in a report they issued on an October 14.

ArcelorMittal SA is a holding company. The company has a market cap of $7.08 billion. The Firm is a steel and mining company, which operates through five divisions: NAFTA; Europe; Brazil; Africa and Commonwealth of Independent States (ACIS), and Mining. It currently has negative earnings. The Firm produces a range of finished and semi-finished steel products.

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