NEW YORK (TheStreet) -- Vale (VALE) - Get Report stock is rising by 6.31% to $4.38 in late-morning trading on Wednesday, as shares of Brazilian companies rally after Brazil's largest political party left President Dilma Rousseff's governing coalition, renewing hopes for an impeachment.
Vale is a Rio de Janeiro-based metals and mining company.
The Brazilian Democratic Movement Party (PMDB) announced yesterday that it will depart from Rousseff's government.
This has fueled speculation that other parties might follow and consequently isolate Rousseff, who faces protests about the country's worst recession in decades and allegations that she is shielding her predecessor from a corruption investigation.
"There's expectation that more parties will follow PMDB and leave the president," Jason Vieira, the chief economist at Infinity Asset Management, told Bloomberg. "Investors don't care who the leaders are. They're interested in seeing an improvement in economic policies."
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Vale's weaknesses include its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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.