Is ArcelorMittal (MT) Stock Undervalued 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, 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ArcelorMittal (MT). MT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.19 right now. For comparison, its industry sports an average P/E of 8.08. Over the past year, MT's Forward P/E has been as high as 12.71 and as low as 2.27, with a median of 5.73.
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 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 0.29. This compares to its industry's average P/S of 0.34.
Finally, investors should note that MT has a P/CF ratio of 2.66. 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 8.23. Over the past 52 weeks, MT's P/CF has been as high as 2.94 and as low as 0.95, with a median of 1.57.
If you're looking for another solid Steel - Producers value stock, take a look at Olympic Steel (ZEUS). ZEUS is a # 2 (Buy) stock with a Value score of A.
Furthermore, Olympic Steel holds a P/B ratio of 1.05 and its industry's price-to-book ratio is 1.63. ZEUS's P/B has been as high as 1.27, as low as 0.50, with a median of 0.76 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ArcelorMittal and Olympic Steel are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MT and ZEUS feels like a great value stock at the moment.
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ArcelorMittal (MT) : Free Stock Analysis Report
Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report
