ArcelorMittal S.A. MT shares have rallied roughly 39.1% over the past three months. We are optimistic about MT’s prospects and believe that the time is right for you to add the stock to your portfolio, as it looks promising and is poised to carry the momentum forward.

Let’s take a look at the factors that make this Zacks Rank #2 (Buy) stock a compelling choice for investors right now.

MT’s Stock Outperforms Industry

MT has outperformed the industry it belongs to over the past year. The company’s shares have rallied 41.9% against a 23.6% decline of the industry.

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Healthy Earnings Growth Prospects for MT

The Zacks Consensus Estimate for earnings for 2025 for ArcelorMittal is currently pegged at $4.23 per share, suggesting year-over-year growth of 43.4%.

ArcelorMittal Expands High-Vale Steel Offerings

MT reported earnings of $1.16 per share for the first quarter of 2025, which beat the Zacks Consensus Estimate of 71 cents. 

ArcelorMittal is boosting its steel production capacity with a strong emphasis on higher-value offerings. As a key element of this strategy, it is enhancing its automotive steel range by introducing a next-generation suite of advanced high-strength steels (AHSS). This expanded global portfolio positions ArcelorMittal to seamlessly address customer needs through a robust mix of technical expertise and product innovation.

MT’s New Electrical Steel Plant to Boost Domestic Supply

ArcelorMittal has confirmed plans to build a fully owned non-grain-oriented electrical steel (NOES) plant in Alabama. This facility is designed to meet the growing demand for premium electrical steel, provide manufacturers with a dependable domestic supply and help ease supply chain vulnerabilities. The Calvert plant will include essential production infrastructure: an annealing pickling line, a cold-rolling mill, an annealing coating line, a packaging and slitter line, along with various supporting equipment tailored for specialized electrical steel manufacturing.

MT Delivering Shareholder Value Through Buybacks and Dividends

ArcelorMittal remains dedicated to enhancing shareholder value through share repurchase initiatives. Additionally, it raised its base dividend by 10%, increasing it to 55 cents per share, reflecting both the effect of these buybacks and the robustness of its growth projects. 

ArcelorMittal plans to continue distributing at least 50% of its post-dividend free cash flow to shareholders via ongoing share buybacks, reinforcing its strong commitment to returning value.

Other Stocks to Consider

Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Agnico Eagle Mines AEM and Avino Silver & Gold Mines Ltd. ASM.

Carpenter Technology currently carries a Zacks Rank #2. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 157.7% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Agnico Eagle’s current-year earnings is pegged at $1.61 per share. AEM, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 12.3%. The company's shares have rallied 74.4% in the past year.

Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 271.5% in the past year.

 

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This article originally published on Zacks Investment Research (zacks.com).

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