ArcelorMittal
MT
Delayed Euronext Amsterdam - 11/17 05:39:16 pm
23.66EUR
-0.38%

Good timing to anticipate the return of volatility

Envoyer par e-mail
Anas Lozach
 

Strategy published on : 11/10/2017 | 09:47

long trade
Stop-loss triggered

Entry price : 25.125€
Target : 29€
Stop-loss : 23.1€
Potential : 15.42%

The price of ArcelorMittal shares is range-bound. This phase will end sooner or later when volatility comes back.
Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.59 for the 2017 fiscal year.

● Its low valuation, with P/E ratio at 8.76 and 9.38 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Analysts covering this company mostly recommend stock overweighting or purchase.


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at EUR 25.64.

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● The company's earnings releases usually do not meet expectations.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

Zonebourse.com 2017
Envoyer par e-mail