ARCELORMITTAL

MT
Real-time Quote. Real-time  - 01/20 11:39:14 am
31.12EUR -1.58%

ArcelorMittal : Increase of volatility

01/13/2022 | 02:40am
Jordan Dufee
Senior Analyst

Strategy published on : 01/13/2022 | 02:40

long trade
Live

Entry price : 32.59€
Target : 40€
Stop-loss : 27.7€
Potential : 22.74%

ArcelorMittal shares have recently benefited from a buyers' comeback, which was accompanied by a rise in volumes and volatility. This situation suggests a continuation of the upward dynamic.
Investors have an opportunity to buy the stock and target the € 40.

Summary

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

● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.


Strengths

● The stock, which is currently worth 2021 to 0.4 times its sales, is clearly overvalued in comparison with peers.

● The company's share price in relation to its net book value makes it look relatively cheap.

● The company has a low valuation given the cash flows generated by its activity.

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

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

● 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

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● The company's earnings growth outlook lacks momentum and is a weakness.

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

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.

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