Recs

6

5-Star Stocks Poised to Pop: Vale

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Brazilian mining giant Vale (NYSE: VALE  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Vale's business and see what CAPS investors are saying about the stock right now.

Vale facts

Headquarters (Founded)

Rio de Janeiro, Brazil (1942)

Market Cap

$166.6 billion

Industry

Industrials metals and minerals

Trailing-12-Month Revenue

$50.60 billion

Management

President/CEO Roger Agnelli

CFO Guilherme Cavalcanti

Return on Equity (Average, Past 3 Years)

21.6%

Cash/Debt

$10.02 billion / $27.95 billion

Dividend Yield

2.4%

Competitors

BHP Billiton (NYSE: BHP  )

Freeport-McMoRan (NYSE: FCX  )

Rio Tinto (NYSE: RIO  )

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

On CAPS, 98% of the 6,519 members who have rated Vale believe the stock will outperform the S&P 500 going forward. These bulls include Max0Nix and All-Star BudandMolly, who is ranked in the top 1% of our community.

Late last year, Max0Nix listed several of Vale's positives:

Low-cost producer, diversifying away from iron ore, and appreciation of real/depreciation of US dollar. Could also have dividend increases. Came through "great recession" in very good shape. Management seems to know how to profitably cooperate with Brazilian government.

Currently, Vale even sports a cheapish price-to-cash flow of 8.1. That represents a discount to gorilla mining foes BHP (10.5), Freeport (14.7), and Rio Tinto (9.8).

CAPS All-Star BudandMolly elaborates on the bull case:

The need for iron ore will continue to grow with China, India, Asia and other third world countries increasing their demand for steel. [Vale] is in a strong position to expand production and increase profits as commodity prices continue to rise, especially iron ore, where demand will outstrip production both near and long term. Buy on major dips and hold for the longer term.

What do you think about Vale, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | Recommend This Article (6)

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1456667, ~/Articles/ArticleHandler.aspx, 9/22/2014 10:41:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Pacampara
TMFEZMagic

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

Today's Market

updated 1 hour ago Sponsored by:
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASD 4,527.69 -52.10 -1.14%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/22/2014 4:01 PM
VALE $11.44 Down -0.56 -4.67%
Companhia Vale Ads CAPS Rating: ****
BHP $61.28 Down -2.03 -3.21%
BHP Billiton Limit… CAPS Rating: ***
FCX $33.17 Down -0.89 -2.61%
Freeport-McMoRan C… CAPS Rating: ****
RIO $50.17 Down -1.51 -2.92%
Rio Tinto plc (ADR… CAPS Rating: ****

Advertisement