Are Investors Undervaluing ArcelorMittal (MT) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is ArcelorMittal (MT). MT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 3.46 right now. For comparison, its industry sports an average P/E of 4.95. Over the last 12 months, MT's Forward P/E has been as high as 37.63 and as low as 3.21, with a median of 5.61.
Another valuation metric that we should highlight is MT's P/B ratio of 0.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.79. Over the past year, MT's P/B has been as high as 0.82 and as low as 0.33, with a median of 0.65.
Finally, we should also recognize that MT has a P/CF ratio of 4.05. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MT's P/CF compares to its industry's average P/CF of 11.59. Within the past 12 months, MT's P/CF has been as high as 15.68 and as low as -12.35, with a median of 4.27.
These are just a handful of the figures considered in ArcelorMittal's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MT is an impressive value stock right now.
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