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Is VALE S.A. (VALE) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is VALE S.A. (VALE - Free Report) . VALE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 4.18, which compares to its industry's average of 7.02. VALE's Forward P/E has been as high as 9.12 and as low as 4.15, with a median of 5.92, all within the past year.

Finally, investors will want to recognize that VALE has a P/CF ratio of 10.22. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. VALE's current P/CF looks attractive when compared to its industry's average P/CF of 12.58. Over the past 52 weeks, VALE's P/CF has been as high as 21.20 and as low as 8.48, with a median of 11.09.

These are just a handful of the figures considered in VALE S.A.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VALE is an impressive value stock right now.


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