Yahoo Finance Are Investors Undervaluing ArcelorMittal (MT) Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is ArcelorMittal (MT). MT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MT has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.29.
Finally, investors should note that MT has a P/CF ratio of 2.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MT's current P/CF looks attractive when compared to its industry's average P/CF of 4.53. Within the past 12 months, MT's P/CF has been as high as 2.37 and as low as 0.95, with a median of 1.47.
Investors could also keep in mind POSCO (PKX), an Steel - Producers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, POSCO holds a P/B ratio of 0.47 and its industry's price-to-book ratio is 1.51. PKX's P/B has been as high as 0.48, as low as 0.24, with a median of 0.38 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that ArcelorMittal and POSCO are likely undervalued currently. And when considering the strength of its earnings outlook, MT and PKX sticks out as one of the market's strongest value stocks.
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ArcelorMittal (MT) : Free Stock Analysis Report
POSCO (PKX) : Free Stock Analysis Report
