4-Star Stocks Poised to Pop: ArcelorMittal

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, steel giant ArcelorMittal (NYS: MT) has earned a respected four-star ranking.

With that in mind, let's take a closer look at ArcelorMittal's business and see what CAPS investors are saying about the stock right now.

ArcelorMittal facts

Headquarters (founded)Luxembourg (1989)
Market Cap$25.7 billion
IndustrySteel
Trailing-12-Month Revenue$92.2 billion
ManagementChairman/CEO Lakshmi Mittal
CFO Aditya Mittal
Return on Equity (average, past 3 years)1.9%
Cash/Debt$2.8 billion / $27.7 billion
Dividend Yield4.5%
CompetitorsGerdau (NYS: GGB)
Nucor (NYS: NUE)
United States Steel (NYS: X)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 2,080 members who have rated ArcelorMittal believe the stock will outperform the S&P 500 going forward. These bulls include baselineace and TXinvestor82.  

Just last week, baselineace tapped ArcelorMittal as a timely income opportunity:

U.S. infrastructure is deteriorating and emerging markets infrastructure is, well, emerging. Can't go wrong here at these prices. Great dividend yield too.

ArcelorMittal even sports a particularly paltry price-to-book of 0.4. That represents a discount to competitors like Nucor (1.6), U.S. Steel (0.9), and Gerdau (0.9).

CAPS member TXinvestor82 elaborates on the bull case:

Lakshmi Mittal is a savvy businessman who has spent the past 3 decades forging the largest steelmaker in the world. However, his financial prowess keeps him looking over profitability like a hawk, and even through the downturn he did not sacrifice the company's margins. With global operations, I feel that Europe's problems have been unfairly sinking this stock all year. It's still best-in-class. Outperform.

What do you think about ArcelorMittal, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of ArcelorMittal. Motley Fool newsletter services have recommended buying shares of Nucor. Try any of our Foolish newsletter services free for 30 daysWe Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners