Yahoo Finance Are Investors Undervaluing ArcelorMittal (MT) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
ArcelorMittal (MT) is a stock many investors are watching right now. MT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.56 right now. For comparison, its industry sports an average P/E of 7.33. Over the past year, MT's Forward P/E has been as high as 12.71 and as low as 2.06, with a median of 4.39.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MT has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.31.
Finally, our model also underscores that MT has a P/CF ratio of 2.05. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.27. Over the past year, MT's P/CF has been as high as 2.37 and as low as 0.95, with a median of 1.48.
Another great Steel - Producers stock you could consider is Ryerson (RYI), which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Ryerson has a P/B ratio of 1.51 while its industry's price-to-book ratio sits at 1.58. For RYI, this valuation metric has been as high as 2.18, as low as 0.90, with a median of 1.35 over the past year.
These are just a handful of the figures considered in ArcelorMittal and Ryerson'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 and RYI is an impressive value stock right now.
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ArcelorMittal (MT) : Free Stock Analysis Report
Ryerson Holding Corporation (RYI) : Free Stock Analysis Report
