4-Star Stocks Poised to Pop: Vale

Updated

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

$97.0 billion

Industry

Industrial metals and minerals

Trailing-12-Month Revenue

$51.1 billion

Management

CEO Murilo Ferreira (since 2011)
CFO Tito Martins (since 2011)

Return on Equity (average, past 3 years)

22.2%

Cash/Debt

$5.0 billion / $25.1 billion

Dividend Yield

5.6%

Competitors

BHP Billiton
Cliffs Natural Resources
Rio Tinto


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

On CAPS, 98% of the 6,635 members who have rated Vale believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, NHWeston102, offered three good reasons to look into the stock:

First, it's Brazil! Second, with the exception [Chesapeake Energy], fewer other producers of commodities have fallen so far -- but [Vale] is not run by shareholder-hating con-men. Third, they are innovating in fertilizers and will get a boost from agriculture. Good entry point here, methinks.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong 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 small miner with big potential. The report is 100% free, but it won't be around forever, so 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 thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of Chesapeake. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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