POSCO: Look Past Q3 Earnings Miss

The Value Pendulum
Investing Group Leader
(10min)

Summary

  • POSCO Holdings' Q3 2024 bottom line fell short of expectations, but I think investors should focus on the stock's future prospects and valuation re-rating potential.
  • The stock is currently trading at a mid-single-digit forward EV/EBITDA ratio and below 0.5 times P/B.
  • The potential re-rating catalysts for PKX include a fourth-quarter earnings turnaround and the successful conclusion of its portfolio restructuring exercise by 2026.
  • I maintain my Buy rating for POSCO Holdings, as the stock is cheap with potential catalysts.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

POSCO CENTER

Jae Young Ju

My Buy rating for POSCO Holdings Inc.'s (NYSE:PKX) (005490:KS) shares remains unchanged. Investors should look beyond PKX's recent Q3 earnings miss and focus on potential short-term and medium-term re-rating catalysts. POSCO Holdings' shares are cheap considering its trailing P/B

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This article was written by

The Value Pendulum
12.59K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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