#3 - Vale (NYSE:VALE)
Vale S.A. (NYSE: VALE) is another commodity-based stock that makes this list of stocks under $20 worth considering. The company produces and extracts iron ore and iron ore pellets. According to Future Market Insights, demand for global iron ore pellets will increase at a compound annual growth rate (CAGR) of 7.9% in the next 10 years. The catalyst for that growth is iron ore's essential role in steel production.
The company also mines copper, which is also expected to see strong demand growth over the next decade. To that end, Vale reported 50% production growth in the fourth quarter, which is its highest level since 2018.
VALE stock is down 20% in the last year and the company is projecting a 13% decline in earnings in 2024. However, analysts are looking at the company's strong fundamentals and ultra-low 4.6x forward P/E ratio in assigning the stock a $16.98 price target, which is a 40.5% increase from the company's price on March 28, 2024.
About Vale
Vale SA, together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services.
Read More - Current Price
- $8.90
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $14.38 (61.6% Upside)
