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5-Star Stocks Poised to Pop: ArcelorMittal

Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, steel-producing behemoth ArcelorMittal (NYSE: MT  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

$115 billion

Industry

Steel

Trailing-12-month revenue

$110.55 billion

Management

CEO Lakshmi Mittal B. Com

CFO Aditya Mittal

Return on equity (avg. past three years)

26.4%

CAPS members bullish on MT also bullish on:

Vale (NYSE: RIO  )

Apple (Nasdaq: AAPL  )

Freeport-McMoRan Copper & Gold (NYSE: FCX  )

CAPS members bearish on MT also bearish on:

United States Steel (NYSE: X  )

AK Steel (NYSE: AKS  )

Nucor (NYSE: NUE  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, fully 469 of 478 of the All-Star members who have rated ArcelorMittal -- some 98% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include jester112358 and pwacker, both of whom are ranked in the top 5% of our community.

In June 2007, jester112358 informed our community: "[T]he best aspect of this company ... is the terrific management. One of the most cost efficient steel producers."

A more recent pitch from pwacker less than three months ago shared that bullish sentiment in tagging the stock as one steal of a steel:

Steel is not publicly traded, thus the steep rise in its price has not been noticed as much as those of exchange traded materials. However, as steel prices have rallied, end-users will more publicly air their pricing concerns, increasing the visibility of the steel sector. As steel has no substitutes and supply is limited (very few additions to capacity in developed countries, iron ore shipping at full capacity limits further capacity increases), prices will likely continue their upwards trajectory. [ArcelorMittal] ... is the dominant player in this industry. Management has proven excellent at integrating new acquisitions, and finding new synergistic acquisition targets in far flung areas of the globe.

What do you think about ArcelorMittal, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


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5/20/2013 12:04 PM
MT $13.13 Up +0.23 +1.78%
ArcelorMittal CAPS Rating: ****
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