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ArcelorMittal, Grubhub, Energy Select Sector SPDR ETF, United States Brent Oil Fund and United States Oil Fund ETF highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL - February 16, 2017 - Zacks Equity Research highlights ArcelorMittal ( NYSE: MT - Free Report ) as the Bull of the Day and Grubhub ( NYSE: GRUB - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Energy Select Sector SPDR ETF (NYSEARCA: XLE- Free Report ), United States Brent OilFund (NYSEARCA: BNO- Free Report ) and United States Oil Fund ETF (NYSEARCA: USO- Free Report ).

Here is a synopsis of all five stocks:

Bull of the Day :

Trump's plans to rebuild America's infrastructure have sent industrial metals surging post-election. Most steelmakers remain optimistic about the outlook for 2017 in anticipation of rising investments in infrastructure and manufacturing in the US.

About the Company

Luxembourg-based ArcelorMittal ( NYSE: MT - Free Report ) is the world's leading steel and mining company with about 114 million tons of annual production capacity and 210,000 employees across 60 countries.

They are the largest producer of steel in North and South America, the EU and Africa and have a growing presence in Asia.

They are also one of the largest producers of iron ore in the world with a global portfolio of 16 operating units with mines in operation or development.

Encouraging Fourth Quarter Results

The company swung to a profit in Q4. They reported a net income of $403 million compared to a net loss of $6.7 billion reported a year ago. The results in the previous year-ago quarter was hurt by impairment charges of roughly $4.7 billion.

Adjusted earnings of $0.16 per share were ahead of the Zacks Consensus Estimate of $0.13.

Revenues through up 1% year over year, were slightly shy of the Zacks Consensus Estimate.

Total steel shipments increased 1.6% year over year while average selling prices went up 3.5%.

"As we enter into 2017, I see there is a positive momentum both in the business and the market," said the CEO Lakshmi Mittal.

The CEO also hoped that current administration would take action to address the problem of rising cheap imports from China.

Rising Estimates

Analysts have been raising estimates for the steelmaker after much better-than-expected results.

Zacks Consensus Estimates for the current and next year have surged to $0.73 per share and $0.71 per share respectively from $0.65 each, before the report.

Bear of the Day :

Grubhub ( NYSE: GRUB - Free Report ) provides online and mobile ordering platforms to enable diners to order directly from more than 50,000 takeout restaurants in over 1,100 US cities and London. They are headquartered in Chicago and also have offices in New York and London.

In late 2013, Grubhub and Seamless merged and their current portfolio portfolio of brands includes Grubhub, Seamless, MenuPages, Allmenus, LAbite, Restaurants on the Run, DiningIn and Delivered Dish. The company IPO'd in 2014.

They currently process more than 290,000 daily orders and serve approximately 8.2 million active diners.

Results Disappoint

The company reported disappointing Q4 results. Their adjusted earnings of 19 cents per share missed the Zacks Consensus Estimate of 20 cents per share.

"Building out more restaurants to order from is where we are looking to grow in 2017," said the CEO , adding that the company's penetration rate remains "dramatically below" 10% in core markets such as Chicago and New York City.

Shares plunged after the report.

For the current year, the management expects revenues in the range of $620 million to $660 million and adjusted EBITDA in the range of $165 million to $190 million.

Falling Estimates

Analysts have slashed their estimates for the company after disappointing results. Zacks Consensus Estimates for the current and the next fiscal year have plunged to $0.90 per share and $1.12 per share respectively, from $0.96 and $1.21, 7 days ago. Declining estimates sent the stock to a Zacks Rank #5 (Strong Sell).

Additional content:

U.S. Oil Inventories Surge Despite 90% OPEC Compliance

Despite OPEC on the edge of record conformity of 90% in reducing oil production, this week's EIA oil inventory report released bearish data.

U.S. commercial crude inventories have found record highs at 518.1 million barrels, which is an increase by 9.5 million from the previous week; gasoline stock piles topped for an all-time high, rising by 2.8 million barrels, for a current 259.1 million barrel pile.

Investors in oil related funds are being nipped due to the report. Energy Select Sector SPDR ETF (NYSEARCA: XLE- Free Report ) is down 0.46%, United States Brent Oil Fund (NYSEARCA: BNO- Free Report ) is down 0.13%, and United States Oil Fund ETF (NYSEARCA: USO- Free Report ) is down 0.09%.

Builds Due to Decreased Demand

Since the end of 2016, EIA data shows that gasoline inventories have jumped by 10%. However, the last 4 weeks has seen a decrease of overall demand by 5.3% year-on-year. Demand for gasoline in the U.S. sits at 8.43 million barrels per day.

"A build in gasoline stock is in tandem with seasonal norms and further builds are expected in the coming weeks as demand for the fuel remains low" commented Abishek Kumar, senior energy analyst at Interfax Energy's Global Gas Analytics.

An OPEC Update

OPEC has had a strong start in 2017 in reducing output to increase oil prices . However, with this, compliance nation-by-nation is mixed.

Saudi Arabia, the world's largest oil producer, has been dedicated to making the deal work and is expecting to reduce output by more than listed in agreements. Iraq was reported to only comply by 40%. Other non-OPEC nations, such as Russia, have minimally reduced output but their adherence is expected to increase.

In the last five years, oil has seen a wild series of price fluctuations. From a barrel of crude trading over $100 in 2013 to below $30 in 2016, the move to push global oil prices upwards is in play by OPEC. WTI crude oil is currently at $53.20 a barrel.

As discussions and overall world compliance in oil production increases, it looks like OPEC's endeavors for the long run will find success in increasing oil prices.

Stocks that Aren't in the News. Yet.

You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>

Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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ArcelorMittal (MT): Free Stock Analysis Report

GrubHub Inc. (GRUB): Free Stock Analysis Report

SPDR-EGY SELS (XLE): ETF Research Reports

US BRENT OIL FD (BNO): ETF Research Reports

US-OIL FUND LP (USO): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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