Yahoo Finance Are Investors Undervaluing ArcelorMittal (MT) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
We also note that MT holds a PEG ratio of 2.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MT's PEG compares to its industry's average PEG of 2.79. Within the past year, MT's PEG has been as high as 2.34 and as low as 1.94, with a median of 2.07.
Finally, investors will want to recognize that MT has a P/CF ratio of 1.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.88. Over the past 52 weeks, MT's P/CF has been as high as 2.17 and as low as 0.95, with a median of 1.47.
Usinas Siderurgicas de Minas Gerais (USNZY) may be another strong Steel - Producers stock to add to your shortlist. USNZY is a # 2 (Buy) stock with a Value grade of A.
Shares of Usinas Siderurgicas de Minas Gerais currently holds a Forward P/E ratio of 9.65, and its PEG ratio is 0.75. In comparison, its industry sports average P/E and PEG ratios of 8.95 and 2.79.
Over the last 12 months, USNZY's P/E has been as high as 15.30, as low as 2.68, with a median of 4.93, and its PEG ratio has been as high as 0.75, as low as 0.16, with a median of 0.28.
Additionally, Usinas Siderurgicas de Minas Gerais has a P/B ratio of 0.16 while its industry's price-to-book ratio sits at 1.51. For USNZY, this valuation metric has been as high as 0.40, as low as 0.13, with a median of 0.18 over the past year.
These are only a few of the key metrics included in ArcelorMittal and Usinas Siderurgicas de Minas Gerais strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MT and USNZY look like an impressive value stock at the moment.
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ArcelorMittal (MT) : Free Stock Analysis Report
Usinas Siderurgicas de Minas Gerais SA (USNZY) : Free Stock Analysis Report
