This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock of Steel: ArcelorMittal Has 50% Upside Over The Next Year

Jack Mohr
12/17/14 2:09 PM EST
ArcelorMittal comes in at number three in this week's countdown of the best European stocks for 2015. ArcelorMittal is the world's largest steel producer with nearly 10% global market share. What stands out is just how undervalued this stock is, trading at less than half of its tangible book value. Any time you see that, it's worth at the very least taking a closer look. While cyclicality, raw material costs, and competition pose risks, the firm's scale advantage, vertical integration, and excellent management are mitigating factors. Its CEO – who founded the company in 1976 – has proven himself one of the most capable executive officers in the industry and controls 40% of the company, directly aligning his incentives with those of shareholders. The company is ahead of schedule on its major cost cutting initiatives, and has achieved over $1.5 billion in annual savings so far, with another $1.5 billion to be delivered by the end of next year. This positions the company for powerful margin expansion as core steel markets recover. ArcelorMittal is a beleaguered European stock that is poised for a major bounce in 2015.
Stocks in this video: MT

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs