Trade-Ideas LLC identified

Vale

(

VALE

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Vale as such a stock due to the following factors:

  • VALE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $159.4 million.
  • VALE traded 51,138 shares today in the pre-market hours as of 9:15 AM.
  • VALE is up 2.3% today from yesterday's close.

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More details on VALE:

Vale S.A., together with its subsidiaries, engages in the research, production, and sale of iron ore and pellets, gold, silver, and cobalt, as well as raw materials for steelmaking in Brazil and internationally. The stock currently has a dividend yield of 1.7%. VALE has a PE ratio of 5. Currently there are 3 analysts that rate Vale a buy, 3 analysts rate it a sell, and 6 rate it a hold.

The average volume for Vale has been 29.1 million shares per day over the past 30 days. Vale has a market cap of $27.8 billion and is part of the basic materials sector and metals & mining industry. Shares are up 62% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vale as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:

  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market, VALE SA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$508.00 million or 195.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, VALE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • VALE's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that VALE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.69 is low and demonstrates weak liquidity.
  • Despite the weak revenue results, VALE has significantly outperformed against the industry average of 45.9%. Since the same quarter one year prior, revenues slightly dropped by 8.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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