Recs

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5-Star Stocks Poised to Pop: ArcelorMittal

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, steel juggernaut ArcelorMittal (NYSE: MT  ) has earned a coveted five-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, Luxembourg (1989)

Market Cap

$51.7 billion

Industry

Steel

Trailing-12-Month Revenue

$87.58 billion

Management

Chairman / CEO Lakshmi Mittal
CFO Aditya Mittal

Return on Equity (Average, Past 3 Years)

17.4%

Cash / Debt

$7.24 billion / $30.29 billion

Dividend Yield

2.2%

Competitors

United States Steel (NYSE: X  )
Gerdau (NYSE: GGB  )
POSCO (NYSE: PKX  )

CAPS Members Bullish on MT Also Bullish on

Vale (NYSE: VALE  )
General Electric (NYSE: GE  )

CAPS Members Bearish on MT Also Bearish on

Citigroup (NYSE: C  )

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

On CAPS, 97.2% of the 1,580 members who have rated ArcelorMittal believe the stock will outperform the S&P 500 going forward. These bulls include v12golfcart and GenevaProdigy.

Just last month, v12golfcart kept a steely eye on ArcelorMittal's financial position:

Mittal knows steel, and he runs some of the most efficient mills out there. When industrial activity picks up again, [ArcelorMittal] is going to come back with a vengeance. Recent quarters have shown that the leverage situation (one of the major reasons for depressed prices) is no longer an issue as [ArcelorMittal] has been able to successfully refinance large portions of their debt.

In an earlier pitch, GenevaProdigy echoes that contrarian sentiment:

As more evidence shows that the recession is moderating, and also signs that the demand for steel will increase due to explosive growth in BRIC and other developing nations, I believe that this will be a fortune maker. ArcelorMittal is the largest steel company in the world and if any steel maker were to profit from rising demand, this will be it. ... Furthermore, it has a history of consistently increasing sales, earnings and cash flow.

What do you think about ArcelorMittal, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 03, 2009, at 11:13 AM, pondee619 wrote:

    Brian:

    I understand from your last response to my e-mail, that there are just too many complications for you to create a "poised to" CAPS player. This is a real pity as the only value these articles would have is IF the stocks that were "poised to" do something had a better than middling chance of doing that. The story may be different if you highlighted stocks that had recently attained the "status" cited in your articles. You could then claim to point out recent CAPS ratings changes. But that is not the case. These articles are nothing but: Hey here is a #star stock. It is supoposed to go up or down based on that star#. Here is a quote from a random fool which supports this position. Pay no attention to the past performance of said fool.

    Sad to say, but, with no corrolation between "poised to' and actual performance these articles are non-value added.

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