We issued an updated research report on premium industrial metals and minerals company, Vale S.A. (VALE - Free Report) , on Jun 14, 2016. Established in 1942, the company is currently the largest exporter as well as importer of iron ore and pellets in the global mining market. Over time, the firm has managed to significantly improve the scale of its business through robust growth strategies. However, Vale’s business is being affected by certain headwinds.
Scopes for Improvement
Vale has been improving its operational performance through initiatives to enhance productivity. The company aims to further improve its revenues and margins on the back of specialized cost-saving plans, new growth projects and superior mining yields, going forward. Moreover, efficient disinvestment programs and suitable capital deployment strategies should help the company stabilize its debt level in the coming quarters. Also, Vale’s investments in high-return growth opportunities should support its share buyback and dividend return programs in the near term.
Problems Faced by the Company
Vale operates in an extremely challenging macroeconomic environment. Soft demand from prominent industrial goods consumers like China has been adversely affecting the sales of mining giants like Vale. Moreover, volatility in the oil and financial markets raises macroeconomic risks for the company. In addition, the dismal commodity pricing environment continues to affect Vale’s top-line results. Moreover, the company’s business depends on licenses and permits issued by the government. Changes in government policies might lead to unfavorable developments in this regard. These, in turn, are likely to adversely impact the company’s growth or productivity plans, thereby directly affecting its revenues as well as margins.
Stocks to Consider
Vale presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Cliffs Natural Resources Inc. (CLF - Free Report) , First Majestic Silver Corp. (AG - Free Report) and Antofagasta plc . All the three stocks currently hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
We issued an updated research report on premium industrial metals and minerals company, Vale S.A. (VALE - Free Report) , on Jun 14, 2016. Established in 1942, the company is currently the largest exporter as well as importer of iron ore and pellets in the global mining market. Over time, the firm has managed to significantly improve the scale of its business through robust growth strategies. However, Vale’s business is being affected by certain headwinds.
Scopes for Improvement
Vale has been improving its operational performance through initiatives to enhance productivity. The company aims to further improve its revenues and margins on the back of specialized cost-saving plans, new growth projects and superior mining yields, going forward. Moreover, efficient disinvestment programs and suitable capital deployment strategies should help the company stabilize its debt level in the coming quarters. Also, Vale’s investments in high-return growth opportunities should support its share buyback and dividend return programs in the near term.
Problems Faced by the Company
Vale operates in an extremely challenging macroeconomic environment. Soft demand from prominent industrial goods consumers like China has been adversely affecting the sales of mining giants like Vale. Moreover, volatility in the oil and financial markets raises macroeconomic risks for the company. In addition, the dismal commodity pricing environment continues to affect Vale’s top-line results. Moreover, the company’s business depends on licenses and permits issued by the government. Changes in government policies might lead to unfavorable developments in this regard. These, in turn, are likely to adversely impact the company’s growth or productivity plans, thereby directly affecting its revenues as well as margins.
Stocks to Consider
Vale presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Cliffs Natural Resources Inc. (CLF - Free Report) , First Majestic Silver Corp. (AG - Free Report) and Antofagasta plc . All the three stocks currently hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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