Why Vale Is Poised to Outperform

Brian D. Pacampara, The Motley Fool
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 Valehas earned a respected four-star ranking.

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

Vale facts

Headquarters (Founded)

Rio de Janeiro (1942)

Market Cap

$103.1 billion

Industry

Industrial metals and minerals

Trailing-12-Month Revenue

$46.8 billion

Management

CEO Murilo Pinto De Oliveira Ferreira (since 2011)
CFO Luciano Siani Pires (since 2012)

Return on Equity (Average, Past 3 Years)

21.8%

Cash / Debt

$8.8 billion / $31.6 billion

Dividend Yield

3.1%

Competitors

BHP Billiton
Cliffs Natural Resources
Rio Tinto


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

On CAPS, 95% of the 1,440 members who have rated Vale believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Hedonics, succinctly summed up the Vale bull case for our community:

Iron ore stocks like Vale should improve as the economies of the US and China improve. It has a low p/e and a decent balance sheet. Additionally it will pay a decent dividend as we wait for the economic fundamentals to improve.

If you want market-thumping returns, you need to put together the best portfolio you can. 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 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 TrackPoisedTo CAPS account.

The article Why Vale Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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