Stocks ticked higher to kick off the first trading day of September. Despite less than impressive payroll numbers from ADP, the major averages started the day with strength. According to ADP, private payrolls rose just 374,000 in August, well below the Dow Jones estimate of 600,000. The ADP report is a precursor to the official August payroll data, which will be released Friday.
It’s anyone’s guess where this month will lead as a deluge of market influencing factors loom. One thing you can count on is that our team will be scouring the markets in search of great candidates to enrich your portfolio, such as the name we’re covering this morning.
An expanding global population and rapidly moving urbanization are expected to fuel steel demand for years to come. In fact, Zack’s Research rates the Mining – Iron space number 1 out of more than 250 industries.
In today’s trade alert, we’ll cover a top choice from this strong industry and explain the many reasons why it’s a long-term keeper.
Vale (VALE), the world’s largest producer of iron ore and pellets and supplier of the steel industry, has been gaining from a rally in iron ore prices, which hit all-time highs in May with supply concerns in China fueling the rise. China, the largest consumer of steel worldwide, is spending more on infrastructure, so the price of iron ore is expected to remain high for the foreseeable future.
Vale doesn’t limit itself to iron, though. It produces metallurgical and thermal coal, copper, manganese ore, and nickel, which is used in EV batteries. Plus, demand for copper in China may continue to push prices higher in the near term. They also have a logistics network that integrates mines, railroads, ports, and ships, which has provided an edge in the market as it lowers costs to the company.
Analysts expect sales to surge 115% and earnings to soar 517% year-over-year in the second quarter. Earnings are also expected to surge a whopping 372% for the full fiscal year. The company is well-favored among the Wall Street pros and gaining attention. Of 21 analysts offering recommendations for VALE, 18 rate the stock a Buy, 2 rate it a Hold and only 1 say to Sell VALE shares. A median 12-month price target of $26 represents a 36.4% upside from its current price.
Where to invest $1,000 right now...
Before you consider buying Vale, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Vale.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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