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Are Investors Undervaluing ArcelorMittal (MT) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 - Free Report) . MT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.50. This compares to its industry's average Forward P/E of 6.27. MT's Forward P/E has been as high as 490 and as low as -549.57, with a median of 6.12, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.57. This compares to its industry's average P/S of 0.66.
Finally, investors should note that MT has a P/CF ratio of 6.87. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MT's P/CF compares to its industry's average P/CF of 11.30. Within the past 12 months, MT's P/CF has been as high as 15.68 and as low as -12.86, with a median of -6.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ArcelorMittal is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MT feels like a great value stock at the moment.
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 - Free Report) . MT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.50. This compares to its industry's average Forward P/E of 6.27. MT's Forward P/E has been as high as 490 and as low as -549.57, with a median of 6.12, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.57. This compares to its industry's average P/S of 0.66.
Finally, investors should note that MT has a P/CF ratio of 6.87. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MT's P/CF compares to its industry's average P/CF of 11.30. Within the past 12 months, MT's P/CF has been as high as 15.68 and as low as -12.86, with a median of -6.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ArcelorMittal is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MT feels like a great value stock at the moment.