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4-Star Stocks Poised to Pop: Vale

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Brazilian mining giant Vale (NYSE: VALE  ) has earned a respected four-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 (1942)
Market Cap $126.0 billion
Industry Industrial metals and minerals
Trailing-12-Month Revenue $58.2 billion
Management CEO Murilo Ferreira (since 2011)
CFO Tito Martins (since 2011)
Return on Equity (Average, Past 3 Years) 20.2%
Cash/Debt $9.0 billion / $28.0 billion
Dividend Yield 0.2%
Competitors BHP Billiton
Cliffs Natural Resources
Rio Tinto

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 6,623 members who have rated Vale believe the stock will outperform the S&P 500 going forward.  

Earlier this month, one of those bulls, K3VIN0, tapped Vale as a solid international selection:

Very strong company operating in Brazil. Even when the slowdown in Chinese construction occurs (which it inevitably will), the company could grow in the Brazilian market where the construction market is beginning to boom too. There should be no shortage in demand around the world for their products so I don't see this dropping much further, especially with the low valuation at around a P/E of 5.

Of course, despite its four-star rating, Vale may not be your top choice. If that's the case, we've compiled a special free report for investors called "The Tiny Gold Stock Digging Up Massive Profits," which uncovers a much smaller miner with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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 (1) | Recommend This Article (3)

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.

  • Report this Comment On January 26, 2012, at 4:30 PM, eremmell wrote:

    VALE will drop a little more because of the recent announcement that they owe Brasil $5bn in taxes (even though they appealed). They have been deferring paying these taxes for awhile now ... at some point, they have to pay Brasil something. I think they will have to absorb this charge this year. This news may cause some institutional investors to slowly exit this stock.

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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.

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Related Tickers

12/18/2014 4:02 PM
VALE $7.61 Up +0.36 +4.97%
Companhia Vale Ads CAPS Rating: ****

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