The stock market has been relentlessly advancing the last couple of weeks despite inflation concerns and the Fed’s hawkish pivot. Overriding these concerns is expectations of another strong earnings season and the lack of alternatives for investors beyond stocks…
The S&P 500 hit another record high on July 2 rising for a 7th straight day, and the tech-heavy Nasdaq and the Dow Jones Industrial Average also closed higher. The economic recovery led by rapid vaccination drives and supportive fiscal and monetary policies is expected to help fundamentally strong stocks soar in the near term.
ArcelorMittal (MT – Get Rating), Darden Restaurants, Inc. (DRI – Get Rating), and Ternium S.A. (TX – Get Rating) are expected to generate significant returns in the second half of this year because of their solid financials, and consistent product and service innovation. These three stocks possess a solid combination of growth, value, and momentum attributes. So, it could be wise to bet on them now.
ArcelorMittal (MT – Get Rating)
Headquartered in Luxembourg City, Luxembourg, MT owns and operates steel manufacturing and mining facilities. The company’s principal steel products include semi-finished flat products, and its mining products comprise iron ore lumps, fines, concentrates, pellets, and sinter feeds.
On June 18, 2021, MT completed the second share buyback program announced on March 4, 2021. It also commenced a third share buyback program on the same day under the authorization given by the 2021 AGM Authorization for an aggregate amount of $750 million.
The company’s sales surged 9.1% year-over-year to $16.19 billion for the fiscal first quarter ended March 31, 2021. MT’s EBITDA grew 235.3% year-over-year to $3.24 billion. Its adjusted net income came in at $2.28 billion, which represents a 920.1% sequential increase. MT’s EPS came in at $1.94, up 92.1% sequentially.
Analysts expect MT’s EPS and revenue to increase 1,915.8% and 40.3% year-over-year to $3.45 and $18.61 billion, respectively for the quarter ending September 30, 2021. It surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has gained 187.9% over the past year to close Friday’s trading session at $31.50.
MT’s POWR Ratings reflect solid prospects. The company has an overall rating of A, which translates to Strong Buy in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its weighting. It has an A grade for Growth, and a B grade for Value, Momentum, Sentiment, and Quality.
Click here to see more of MT’s component grades. MT is ranked #9 of 35 stocks in the A-rated Steel industry.
Darden Restaurants, Inc. (DRI – Get Rating)
DRI owns and operates roughly 1,804 full-service restaurants in the United States and Canada. The company’s portfolio of differentiated brands includes Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, and Eddie V’s.
On June 24, 2021, the company’s Chairman & CEO Gene Lee said, “Over the last 15 months, we have made numerous strategic investments in our business, while streamlining our operations and improving productivity. Given the business transformation work we have done, and the…
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