5 Best Steel Stocks To Buy Today

In this article, we discuss 5 best steel stocks to buy today. If you want to see more stocks in this selection, check out 11 Best Steel Stocks To Buy Today. 

5. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Holders: 27

Vale S.A. (NYSE:VALE) was founded in 1942 and is headquartered in Rio de Janeiro, Brazil. The company produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. Vale S.A. (NYSE:VALE) operates through Ferrous Minerals and Base Metals segments. On October 29, ​​the company reported a Q3 GAAP EPS of $0.98, beating market estimates by $0.37. 

On December 9, Morgan Stanley analyst Carlos De Alba upgraded Vale S.A. (NYSE:VALE) to Overweight from Equal Weight with a price target of $20, up from $14.50. China’s reopening will continue to be beneficial to miners, but the path forward will be “bumpy,” the analyst told investors in a research note. Additionally, share catalysts for a re-rating include a potential transaction that would “unlock value” from Vale S.A. (NYSE:VALE)’s base metals unit, contended the analyst.

According to Insider Monkey’s data, 27 hedge funds were long Vale S.A. (NYSE:VALE) at the end of the third quarter of 2022, and Rajiv Jain’s GQG Partners held the largest stake in the company, comprising 21.40 million shares worth $285 million.  

Here is what GMO LLC had to say about Vale S.A. (NYSE:VALE) in its Q1 2022 investor letter:

“Let’s look at Vale (NYSE:VALE), the world’s largest iron ore producer, as a case study for how shareholders can be rewarded. Vale’s stock price is about where it was at the beginning of last year. Despite the market’s lack of enthusiasm, the company generated about $20 billion of free cash flow last year. Not bad for a company with a market cap of a little over $100 billion and no substantive debt as of the end of March. 4 What did the company do with all that cash? Last year, Vale paid out about $9 billion in regularly scheduled dividends and distributed another $10 billion between extra dividends and share repurchases. Combined with dividends distributed in the first quarter of this year and a recently announced share repurchase, Vale has returned or announced the return of over $33 billion since the beginning of last year, almost a 32% yield relative to the market cap of the company. Not a bad way to win.”