5 Best Stocks Under $50

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

Share Price as of October 21: $14.33

Number of Hedge Fund Holders: 27

Vale S.A. (NYSE:VALE) is a leading global mining company with a diversified portfolio of mineral assets, including iron ore, nickel, copper, thermal and coking coal, manganese, fertilizer, and kaolin. The company has a long history of delivering shareholder value and is well-positioned to continue doing so in the future as it benefits from continued global demand for its mineral products, particularly from China. The stock is currently trading at bargain levels and is presenting an attractive buying opportunity for investors. As of October 21, Vale S.A. (NYSE:VALE) has a trailing twelve-month PE ratio of 3x and is offering a forward dividend yield of 9.85%. The company has free cash flows of R$11.72 billion and is ranked high among the best stocks to buy now.

This October, Deutsche Bank analyst Liam Fitzpatrick revised his price target on Vale S.A. (NYSE:VALE) to $19 from $20 and reiterated a Hold rating on the shares.

At the close of Q2 2022, 27 hedge funds held stakes in Vale S.A. (NYSE:VALE). The total value of these stakes amounted to $1.78 billion. As of June 30, Fisher Asset Management is the most prominent investor in Vale S.A. (NYSE:VALE) and has stakes worth $324.5 million in the company.

Here is what GMO LLC had to say about Vale S.A. (NYSE:VALE) in its first-quarter 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.”