ArcelorMittal Stock Soars 57% YTD: What's Fueling the Rally?

ArcelorMittal S.A. MT shares have surged 56.6% in the year-to-date period. The company has also outperformed the Zacks Steel - Producers industry’s 47.3% growth over the same time frame. The rally has been driven by higher steel and iron ore production, record iron ore shipments from Liberia and strong liquidity. Investor confidence has also been boosted by the company’s capacity expansion projects. Image Source: Zacks Investment ResearchLet’s take a look at the factors that are driving MT stock.MT Stock Rises on Strong Output and Expansion PlansArcelorMittal produced 13.3 million metric tons of crude steel in the first quarter of 2026, up 3.9% from 12.8 million metric tons in the prior quarter. Steel shipments totaled 12.8 million metric tons during the quarter. The company’s operations benefited from a return to more normalized production levels in North America. The mining segment delivered a strong performance, with total iron ore production reaching 12.9 million metric tons. Iron ore production from ArcelorMittal Mining Canada and Liberia operations totaled 9.7 million metric tons, while shipments reached 10 million metric tons. Notably, Liberia achieved record iron ore production and shipment volumes during the quarter. ArcelorMittal ended the first quarter of 2026 with cash and cash equivalents of $4.36 billion, down from $5.48 billion at the end of 2025. The decline was primarily due to seasonal working capital requirements and negative free cash flow during the quarter. Despite the reduction in cash balances, the company maintained a strong liquidity position, supported by total available liquidity of approximately $9.9 billion.  MT is expanding its steel-making capacity and focusing on shifting to high-added-value products. ArcelorMittal has decided to move forward with plans to establish a fully owned non-grain-oriented electrical steel (NOES) manufacturing facility in Alabama. This new plant aims to meet the rising demand for high-quality electrical steel while supporting manufacturers with a reliable domestic supply and addressing supply chain challenges.As part of this initiative, the ArcelorMittal Calvert plant will incorporate key infrastructure, including an annealing pickling line, a cold-rolling mill, an annealing coating line, a packaging and slitter line and other essential ancillary equipment required for specialized electrical steel production. The company also remains on course with its Liberia iron ore expansion project, which is expected to reach full run-rate capacity beyond 20 million tons (Mt) in fiscal 2026.MT’s Zacks Rank & Key PicksMT currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the Basic Materials space are Nexa Resources S.A. NEXA, DPM Metals Inc. DPMLF and Avino Silver & Gold Mines Ltd. ASM.At present, NEXA sportsna Zacks Rank #1 (Strong Buy), while DPMLF and ASM carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for DPMLF’s current-year earnings is pegged at $3.53 per share, indicating a year-over-year rise of 47.7%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 8.8%. DPMLF shares have plunged 15.2% year to date.The Zacks Consensus Estimate for NEXA’s fiscal-year earnings is pinned at $2.67 per share, indicating a 214.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 59.9%. Shares of the company have surged around 78.6% year to date. The Zacks Consensus Estimate for ASM’s current-year earnings stands at 39 cents per share, reflecting a 34.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise of 125%. ASM’s shares have rallied roughly 9.9% year to date. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks