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Is ArcelorMittal (MT) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
One stock to keep an eye on is ArcelorMittal (MT - Free Report) . 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 2.86 right now. For comparison, its industry sports an average P/E of 4.37. Over the last 12 months, MT's Forward P/E has been as high as 4.90 and as low as 2.34, with a median of 3.25.
Investors should also recognize that MT has a P/B ratio of 0.55. The P/B is a method of comparing a stock's market value to 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 1.33. MT's P/B has been as high as 0.82 and as low as 0.45, with a median of 0.63, over the past year.
Finally, investors will want to recognize that MT has a P/CF ratio of 1.65. 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 current P/CF looks attractive when compared to its industry's average P/CF of 4.59. Over the past 52 weeks, MT's P/CF has been as high as 7.45 and as low as 1.34, with a median of 2.22.
If you're looking for another solid Steel - Producers value stock, take a look at United States Steel (X - Free Report) . X is a # 1 (Strong Buy) stock with a Value score of A.
Shares of United States Steel currently holds a Forward P/E ratio of 2.93, and its PEG ratio is 0.47. In comparison, its industry sports average P/E and PEG ratios of 4.37 and 0.33.
X's price-to-earnings ratio has been as high as 6.17 and as low as 1.60, with a median of 3.64, while its PEG ratio has been as high as 0.77 and as low as 0.42, with a median of 0.49, all within the past year.
Additionally, United States Steel has a P/B ratio of 0.71 while its industry's price-to-book ratio sits at 1.33. For X, this valuation metric has been as high as 1.64, as low as 0.55, with a median of 0.89 over the past year.
These are just a handful of the figures considered in ArcelorMittal and United States Steel'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 X is an impressive value stock right now.
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Is ArcelorMittal (MT) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
One stock to keep an eye on is ArcelorMittal (MT - Free Report) . 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 2.86 right now. For comparison, its industry sports an average P/E of 4.37. Over the last 12 months, MT's Forward P/E has been as high as 4.90 and as low as 2.34, with a median of 3.25.
Investors should also recognize that MT has a P/B ratio of 0.55. The P/B is a method of comparing a stock's market value to 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 1.33. MT's P/B has been as high as 0.82 and as low as 0.45, with a median of 0.63, over the past year.
Finally, investors will want to recognize that MT has a P/CF ratio of 1.65. 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 current P/CF looks attractive when compared to its industry's average P/CF of 4.59. Over the past 52 weeks, MT's P/CF has been as high as 7.45 and as low as 1.34, with a median of 2.22.
If you're looking for another solid Steel - Producers value stock, take a look at United States Steel (X - Free Report) . X is a # 1 (Strong Buy) stock with a Value score of A.
Shares of United States Steel currently holds a Forward P/E ratio of 2.93, and its PEG ratio is 0.47. In comparison, its industry sports average P/E and PEG ratios of 4.37 and 0.33.
X's price-to-earnings ratio has been as high as 6.17 and as low as 1.60, with a median of 3.64, while its PEG ratio has been as high as 0.77 and as low as 0.42, with a median of 0.49, all within the past year.
Additionally, United States Steel has a P/B ratio of 0.71 while its industry's price-to-book ratio sits at 1.33. For X, this valuation metric has been as high as 1.64, as low as 0.55, with a median of 0.89 over the past year.
These are just a handful of the figures considered in ArcelorMittal and United States Steel'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 X is an impressive value stock right now.