Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is ArcelorMittal (MT). MT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.86, which compares to its industry's average of 10.38. Over the last 12 months, MT's Forward P/E has been as high as 8.54 and as low as 4.80, with a median of 6.41.
Finally, investors should note that MT has a P/CF ratio of 6.26. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.49. MT's P/CF has been as high as 14.53 and as low as 4.24, with a median of 6.60, all within the past year.
These are just a handful of the figures considered in ArcelorMittal's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MT is an impressive value stock right now.
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ArcelorMittal (MT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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