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On Jun 20, 2016, Zacks Investment Research upgraded Vale S.A. VALE to a Zacks Rank #1 (Strong Buy) from a Zacks Rank #3 (Hold). Going by the Zacks model, companies sporting a Zacks Rank #1 have better chances of performing better than the broader market over the upcoming quarters.
Why the Upgrade?
Vale is boosting its revenues through new growth projects, higher productivity and efficient disinvestment programs. The company’s disinvestment initiatives and capital deployment strategies are expected to lower its aggregate debt burden in the quarters ahead.
Moreover, increased industrialization in the global forum is enhancing demand for industrial raw materials offered by mining companies like Vale and hence, boosting its revenues.
The company also has a progressive dividend policy in place, reflecting its commitment to increase shareholders’ value. The company’s lucrative dividend policy is supported by its superior capital management system, which Vale maintains by investing in high-return growth opportunities, Vale aims to offer attractive share buyback and dividend return programs to its shareholders in the near future.
Notably, such optimistic aspects have triggered an upward revision in the Zacks Consensus Estimate for the stock. For 2016, the Zacks Consensus Estimate has risen to earnings of 31 cents per share from a loss of 1 penny per share over the past 60 days. For 2017, the same has inched up 280% to 38 cents per share.
Other Stocks to Consider
Other well-ranked stocks within the industry include Cliffs Natural Resources Inc. CLF, First Majestic Silver Corp. AG and Avino Silver & Gold Mines Ltd. ASM. All the three companies currently hold a Zacks Rank #2 (Buy).
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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
CLIFFS NATURAL (CLF): Free Stock Analysis Report
VALE SA (VALE): Free Stock Analysis Report
FIRST MAJESTIC (AG): Free Stock Analysis Report
AVINO SILVER&GD (ASM): Free Stock Analysis Report
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