5 Cheap Value Stocks to Buy for 2022

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

P/E Ratio: 4.05

Price as of December 9: $13.59

Number of Hedge Fund Holders: 27

Vale S.A. (NYSE:VALE), one of the best value stocks to buy for 2022, offers a forward dividend yield of 8.41%. Vale S.A. (NYSE:VALE) is the largest producer of iron ore and nickel in the world, and the mining company is one of the most significant Brazilian corporations that is expected to survive under low iron prices that are plaguing the industry in 2021. 

Vale S.A. (NYSE:VALE) reported Q3 earnings on October 28. EPS in the quarter came in at $1.26, exceeding estimates by $0.19. The $12.68 billion revenue was up 17.84% from the prior year quarter, but missed estimates by $1.31 billion. 

Morgan Stanley analyst Carlos De Alba on December 9 upgraded Vale S.A. (NYSE:VALE) to Overweight from Equal Weight with a price target of $16.50, up from $16, stating that iron ore prices are set to increase in the first half of 2022 due to sequentially higher steel output in China.

Fisher Asset Management holds a leading stake in Vale S.A. (NYSE:VALE) as of the end of September, with 34.86 million shares worth $486.35 million. Overall, 27 hedge funds monitored by Insider Monkey were long Vale S.A. (NYSE:VALE) in the third quarter, with total stakes amounting to $1.97 billion. 

Here is what Miller Value Partners has to say about Vale S.A. (NYSE:VALE) in its Q3 2021 investor letter:

“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”