Current price levels represent good timing for the opening of new short positions with respect to shares in ArcelorMittal. The resistance zone around 15.95 EUR could effectively set off a correction phase over the short term. Investors should open a short trade and target the € 13.23.
In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.
The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.34 for the 2019 fiscal year.
According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
The company does not generate enough profits, which is an alarming weak point.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The company is not the most generous with respect to shareholders' compensation.
The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
Analysts covering the stock have recently lowered their earnings forecast.
For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
Below the resistance at 15.74 EUR, the stock shows a negative configuration when looking looking at the weekly chart.
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