ArcelorMittal
MT
Delayed Euronext Amsterdam - 06/18 05:35:25 pm
28.14EUR
+0.48%

The technical configuration is positive

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Anas Lozach
Analyst

Strategy published on : 06/12/2018 | 08:57

long trade
Live

Entry price : 28.765€
Target : 31.5€
Stop-loss : 27.1€
Potential : 9.51%

Shares in ArcelorMittal show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed.
Investors have an opportunity to buy the stock and target the € 31.5.

Summary

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

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The company shows low valuation levels, with an enterprise value at 0.55 times its sales.

● Its low valuation, with P/E ratio at 7.16 and 7.56 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.

● For several months, analysts have been revising their EPS estimates roughly upwards.

● 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.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at EUR 30.63.

● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● 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.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

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

Zonebourse.com 2018
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