ARCELORMITTAL ● 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 share is getting closer to its long-term support in weekly data, at EUR 21.29, which offers good timing for buyers.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The company shows low valuation levels, with an enterprise value at 0.43 times its sales.
● Its low valuation, with P/E ratio at 4.72 and 5.07 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● 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 have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● 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.
● The group usually releases earnings worse than estimated.
● The company is not the most generous with respect to shareholders' compensation.
● Below the resistance at 24.86 EUR, the stock shows a negative configuration when looking looking at the weekly chart.
