4-Star Stocks Poised to Pop: Vale

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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 (NYS: 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
IndustryIndustrial metals and minerals
Trailing-12-Month Revenue$58.2 billion
ManagementCEO 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 Yield0.2%
CompetitorsBHP 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 newTrackPoisedToCAPS account.

At the time this article was published 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.

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