Why Vale Stock Is Advancing Today
NEW YORK (TheStreet) -- Shares of Vale (VALE) - Get Report are increasing 6.84% to $5.47 in early-afternoon trading on Tuesday as Brazil-based stocks rally on higher prices for commodity exports, given expectations for further monetary stimulus.
"There are still many uncertainties regarding the timing of the rebound, but investors have been encouraged lately by the outlook for sales abroad," Paulo Figueiredo, an economist at FN Capital, told Bloomberg. "Exporters should support the country's gross domestic product while internal demand doesn't accelerate."
Additionally, iron ore prices soared to an 11-week high, according to Bloomberg.
Vale is a Rio de Janeiro-based iron ore producer.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Vale's weaknesses include its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.
You can view the full analysis from the report here: VALE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.