Friday, June 9, 2023

Acerinox beats ArcelorMittal in battle between steel companies at Ibex 35

Acerinox and ArcelorMittal both made progress in the IBEX 35 this 2023, but not to the same extent. Shares of Acerinox have gained more than 12.20% this year, while ArcelorMittal has advanced less, around 2%.

In the presentation of results, Acerinox announced that its net profit was 136 million, which is practically 49% lower than in the first quarter of 2022. Shares gained about 4% and have since then alternated days of promotions and decreases.

The Carlos Ortega-headed company has a 12-month potential of 30.65% on Ibex, according to Reuters analyst consensus, following a one percentage point positive change in its target price since February. Among experts covering the company, 82% recommend its title to Buy, 12% to “Hold” and the remaining 6% to Sell.

Acerinox beats ArcelorMittal in battle between steel companies at Ibex 35

According to technical analysis by Jose Antonio Gonzalez, the company’s recovery process in recent months has “acquired a structure of gradually rising highs and lows, with the aim of reaching the current yearly maximum as well as a broader bearish guideline.” A very long-term declining channel has been established. For its part, until the identified support area around €8.77/€8.56 per share is drilled out, we expect the above bullish scenario Won’t start watching.

For its part, ArcelorMittal earlier this month presented its results for the first quarter of the year, a period in which it achieved a net profit of $1,096 million (992 million in euros), up 73.4 percent from the first quarter’s result. % down 2022 quarter ($4,125 million). Following this publication of the results, the company’s shares fell more than 5% in the coming days, recovering some of the lost ground in the following days.

The analysts’ group gives it an upside of 36.17%, and its outlook on the company’s valuation has improved nearly 3% over the past three months. There is also a strong consensus regarding the movements to be made with the steel company’s shares: 59% bet on buying them, and the remaining 41% prefer to hold them.

Acerinox beats arcelormittal in battle between steel companies at ibex 35

Acerinox beats ArcelorMittal in battle between steel companies at Ibex 35

For José Antonio González, ArcelorMittal “develops a strong bearish turn in the short term, with movement supported by bearish divergence in the daily MACD, as well as a broad key resistance around €32.55/€30.45 per share. In this sense, We are seeing an increase in volatility, which translates into a possible scenario that will reactivate the corrective process if it breaks the support area of ​​€24.10/€23.65 per share.

ArcelorMittal’s copy currently stands at 6.45. Acerinox’s, for its part, stands at 8.3. Thus, the IBEX 35 per cent at 9.62 is below the average of the two steel companies.

The EPS (Earnings Per Share) of ArcelorMittal and Esrinox are 3.83 and 1.21 respectively. Following the same sequence, the PVCs (price to book value) are 0.42 and 0.93. We see a big difference in dividend yield. While ArcelorMittal is at 1.46%, Acerinox fetches a return of 5.96%.

Nation World News Desk
Nation World News Desk
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