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