We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Industry Rank Highlights: Fortescue Metals and Vale
Read MoreHide Full Article
For Immediate Release
Chicago, IL – May 28, 2018 - Stocks featured in this week's Zacks Industry Rank analysis include Fortescue Metals (FSUGY - Free Report) and Vale SA (VALE - Free Report) .
Top Two Picks for Contrarian Investors
The Materials Sector and more specifically, the Iron Ore Mining industry, doesn’t get much love these days. Two Iron Ore makers we track at Zacks are down -32% YTD.
However, I caught a bullish Zacks Industry Rank thread I wanted to follow: The Iron Ore Mining industry group is currently ranked at #21 out of 256 Zacks Industries in late May 2020.
That’s a top 10% ranking.
This Iron Ore Zacks Industry Rank has also been steadily rising over the last 8 weeks, from #101 to #83 and then to #21.
We've all heard the old adage — 50% of a stock's price movement can be attributed to the group it's in.
In fact, studies have shown us that just getting into an average stock in a strong industry is likely to outperform a great stock in a poor industry. 50% of a stock's price movement can be attributed to its industry.
Of course, this does not mean that you can just pick any stock in a top group and expect to make money. But it does underscore the importance of sticking with the best industries.
Back in the middle of the April 2020 pandemic, a fellow by the name of Fredrik Arnold, who calls himself “The Dividend Dog Catcher,” did two intriguing stock screens. These were also focused on the beaten-up and overlooked Materials Sector.
Oftentimes, large-cap stock picks drawn from overlooked industry groups can offer substantial dividend returns and share price appreciation.
Here are his two treasure lists:
His top-ten Materials Sector equities by dividend yield were: ACAZF, CBUMY, EVA, SIM, MTGRY, KIROY, AFBOF WLKP, FSUGY and KUMBF. These 10 picks offered dividend yields ranging from 8.81% to 13.40% annually.
His top-ten Materials Sector firms by broker-target price upside estimates were: NTR, UFS, POL, CMP, VALE, GLT, SWM, WLKP, SIM, and top dog, OSB. These 10 picks averaged a +59.41% share price upside, from current prices to their average broker target price.
When I looked specifically into the Iron Ore Mining industry, I found the two large cap picks offered dividend and value stock share price appreciation potential.
Yes. Both were caught by The Dividend Dog Catcher screens!
Here they are:
(1) Fortescue Metals: At the moment, this stock is a Zacks #3 Rank (HOLD). This name has a $27.5B market cap at the current $18.23 a share price. I see a Zacks Value score of A and a Zacks Growth score of A.
The forward P/E ratio is quite low at 6.53. The market beta is 1.28.
There is a very substantial dividend of $1.81 a year (10.09% annually).
Fortescue Metals Group Ltd. is engaged in the exploration and mining of Iron Ore properties. Its properties primarily include the Cloudbreak and Christmas Creek mine sites and the Solomon project located in Pilbara, Western Australia.
Fortescue Metals Group is based in East Perth, Australia.
The stock has been on a momentum run since 2019, when shares priced at just $6 each. You can’t easily beat that 10% dividend, either.
(2) Vale SA: At the moment, this stock is a Zacks #3 Rank (HOLD). This name has a much bigger $46.05B market cap at a lower $9.11 a share price. In 2019, this stock was trading north of $14 a share. In pre-pandemic 2020, it was $13 a share.
I see a Zacks Value score of A and a Zacks Growth score of D.
The forward P/E ratio is low at 9.05. The market beta is 1.02.
There is a very substantial dividend of $0.59 a year (6.57% annually).
Brazil-based Vale S.A. is one of the world’s largest mining companies. It is the world’s largest producer of Iron Ore, Iron Ore Pellets and nickel. It also produces manganese ore, ferroalloys, metallurgical and thermal coal, copper, platinum group metals (PGMs), gold, silver and cobalt.
Vale has a logistics network integrating mines, railroads, ports and ships, which has provided it an edge in the Iron Ore market. The company has through the years distributed its products to various countries.
Brazil is a commodity-rich country in a deep struggle with this pandemic. The currency (the Brazilian real) has been driven lower and lower. Its neighbor Argentina is belly up.
To wrap this short piece up, what top-down silver lining is seen here?
Not much appeared immediately. After putting this piece together, I thought again.
There is the rising Zacks Industry Rank, very tasty annual dividend yields for the patient investor, and the potential for mainland China’s economy to keep picking up under the usual centrally-planned stimulus. The world’s manufacturer always seeks to do fixed asset infrastructure investments to lift its internal economy up.
In that vein, a stock from the Material Sector and more specifically, the Iron Ore sector, shapes up to be an interesting contrarian investing opportunity.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Industry Rank Highlights: Fortescue Metals and Vale
For Immediate Release
Chicago, IL – May 28, 2018 - Stocks featured in this week's Zacks Industry Rank analysis include Fortescue Metals (FSUGY - Free Report) and Vale SA (VALE - Free Report) .
Top Two Picks for Contrarian Investors
The Materials Sector and more specifically, the Iron Ore Mining industry, doesn’t get much love these days. Two Iron Ore makers we track at Zacks are down -32% YTD.
However, I caught a bullish Zacks Industry Rank thread I wanted to follow: The Iron Ore Mining industry group is currently ranked at #21 out of 256 Zacks Industries in late May 2020.
That’s a top 10% ranking.
This Iron Ore Zacks Industry Rank has also been steadily rising over the last 8 weeks, from #101 to #83 and then to #21.
We've all heard the old adage — 50% of a stock's price movement can be attributed to the group it's in.
In fact, studies have shown us that just getting into an average stock in a strong industry is likely to outperform a great stock in a poor industry. 50% of a stock's price movement can be attributed to its industry.
Of course, this does not mean that you can just pick any stock in a top group and expect to make money. But it does underscore the importance of sticking with the best industries.
Back in the middle of the April 2020 pandemic, a fellow by the name of Fredrik Arnold, who calls himself “The Dividend Dog Catcher,” did two intriguing stock screens. These were also focused on the beaten-up and overlooked Materials Sector.
Oftentimes, large-cap stock picks drawn from overlooked industry groups can offer substantial dividend returns and share price appreciation.
Here are his two treasure lists:
His top-ten Materials Sector equities by dividend yield were: ACAZF, CBUMY, EVA, SIM, MTGRY, KIROY, AFBOF WLKP, FSUGY and KUMBF. These 10 picks offered dividend yields ranging from 8.81% to 13.40% annually.
His top-ten Materials Sector firms by broker-target price upside estimates were: NTR, UFS, POL, CMP, VALE, GLT, SWM, WLKP, SIM, and top dog, OSB. These 10 picks averaged a +59.41% share price upside, from current prices to their average broker target price.
When I looked specifically into the Iron Ore Mining industry, I found the two large cap picks offered dividend and value stock share price appreciation potential.
Yes. Both were caught by The Dividend Dog Catcher screens!
Here they are:
(1) Fortescue Metals: At the moment, this stock is a Zacks #3 Rank (HOLD). This name has a $27.5B market cap at the current $18.23 a share price. I see a Zacks Value score of A and a Zacks Growth score of A.
Fortescue Metals Group Ltd. is engaged in the exploration and mining of Iron Ore properties. Its properties primarily include the Cloudbreak and Christmas Creek mine sites and the Solomon project located in Pilbara, Western Australia.
Fortescue Metals Group is based in East Perth, Australia.
The stock has been on a momentum run since 2019, when shares priced at just $6 each. You can’t easily beat that 10% dividend, either.
(2) Vale SA: At the moment, this stock is a Zacks #3 Rank (HOLD). This name has a much bigger $46.05B market cap at a lower $9.11 a share price. In 2019, this stock was trading north of $14 a share. In pre-pandemic 2020, it was $13 a share.
Brazil-based Vale S.A. is one of the world’s largest mining companies. It is the world’s largest producer of Iron Ore, Iron Ore Pellets and nickel. It also produces manganese ore, ferroalloys, metallurgical and thermal coal, copper, platinum group metals (PGMs), gold, silver and cobalt.
Vale has a logistics network integrating mines, railroads, ports and ships, which has provided it an edge in the Iron Ore market. The company has through the years distributed its products to various countries.
Brazil is a commodity-rich country in a deep struggle with this pandemic. The currency (the Brazilian real) has been driven lower and lower. Its neighbor Argentina is belly up.
To wrap this short piece up, what top-down silver lining is seen here?
Not much appeared immediately. After putting this piece together, I thought again.
There is the rising Zacks Industry Rank, very tasty annual dividend yields for the patient investor, and the potential for mainland China’s economy to keep picking up under the usual centrally-planned stimulus. The world’s manufacturer always seeks to do fixed asset infrastructure investments to lift its internal economy up.
In that vein, a stock from the Material Sector and more specifically, the Iron Ore sector, shapes up to be an interesting contrarian investing opportunity.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.