Despite doubling from its March lows of this year, at the current price near $14, we believe ArcelorMittal’s stock (NYSE: MT) is slightly undervalued. ArcelorMittal stock has rallied from $7 to $14 off the recent bottom compared to the S&P 500 which has increased a little less than 50% from its recent bottom. The stock was able to beat the broader market in the last 6 months as steel prices are expected to rise in the near term. The US government announcing a string of measures along with stimulus packages announced in other economies to keep businesses afloat, and with the Chinese economy opening up, led to expectations of a rise in steel demand and reduction of supply constraints.
