Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
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. The stock holds a P/E ratio of 5.40, while its industry has an average P/E of 7.22. Over the past year, MT's Forward P/E has been as high as 490 and as low as -549.57, with a median of 6.12.
MT is also sporting a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MT's industry has an average PEG of 0.49 right now. MT's PEG has been as high as 0.43 and as low as 0.32, with a median of 0.37, all within the past year.
Another notable valuation metric for MT is its P/B ratio of 0.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MT's current P/B looks attractive when compared to its industry's average P/B of 2.23. Over the past 12 months, MT's P/B has been as high as 0.81 and as low as 0.22, with a median of 0.40.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MT has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.7.
Finally, investors will want to recognize that MT has a P/CF ratio of 17.48. 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 stock's P/CF looks attractive against its industry's average P/CF of 19.41. Over the past 52 weeks, MT's P/CF has been as high as 17.48 and as low as -12.86, with a median of -6.70.
Value investors will likely look at more than just these metrics, but the above data helps show that ArcelorMittal is likely undervalued currently. And when considering the strength of its earnings outlook, MT sticks out at as one of the market's strongest value stocks.
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Is ArcelorMittal (MT) a Great Value Stock 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. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
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. The stock holds a P/E ratio of 5.40, while its industry has an average P/E of 7.22. Over the past year, MT's Forward P/E has been as high as 490 and as low as -549.57, with a median of 6.12.
MT is also sporting a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MT's industry has an average PEG of 0.49 right now. MT's PEG has been as high as 0.43 and as low as 0.32, with a median of 0.37, all within the past year.
Another notable valuation metric for MT is its P/B ratio of 0.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MT's current P/B looks attractive when compared to its industry's average P/B of 2.23. Over the past 12 months, MT's P/B has been as high as 0.81 and as low as 0.22, with a median of 0.40.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MT has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.7.
Finally, investors will want to recognize that MT has a P/CF ratio of 17.48. 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 stock's P/CF looks attractive against its industry's average P/CF of 19.41. Over the past 52 weeks, MT's P/CF has been as high as 17.48 and as low as -12.86, with a median of -6.70.
Value investors will likely look at more than just these metrics, but the above data helps show that ArcelorMittal is likely undervalued currently. And when considering the strength of its earnings outlook, MT sticks out at as one of the market's strongest value stocks.