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$26.1 billion
IndustrySteel
Trailing-12-Month Revenue$94.0 billion
ManagementChairman/CEO Lakshmi Mittal
CFO Aditya Mittal
Return on Equity (average, past 3 years)2.7%
Cash/Debt$3.8 billion / $26.4 billion
Dividend Yield3.6%
CompetitorsJFE Holdings
Tata Steel
United States Steel

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

On CAPS, 97% of the 2,116 members who have rated ArcelorMittal believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those Fools, WEBbuff, nicely summed up the bull case:

Jolted by the stock market especially from July 2011 until late November, [ArcelorMittal's] stock price decreased by about 50%. However, it remains a strong company. ... [ArcelorMittal] is working towards becoming a vertically-integrated company -- it is not only the world's largest steel manufacturer, but also the world's fourth largest iron-ore manufacturer--which will give [ArcelorMittal] greater pricing power and more control over its revenues and expenses. Its size gives it the scale and scope to successfully compete on a global scale. ...

Factors like domestic demand for automobiles and the sovereign debt crisis in Europe might be short-term complicating factors, but I think [ArcelorMittal] is well-equipped to weather these challenges and maintain its status as a strong, indeed preeminent, vertically-integrated company.

Of course, despite its strong four-star rating, ArcelorMittal may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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. 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 - 2012 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