5 Undervalued High Free Cash Flow Stocks to Buy Amid Recession

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

Number of Hedge Fund Holders: 27   

PE Ratio: 3.05 

Free Cash Flow TTM: $16 Billion

Vale S.A. (NYSE:VALE) markets iron ore products. The company is based in Brazil and was founded in 1942. It employs more than 74,000 people. Some of the mining interests it has include iron ore and pellets, manganese, ferroalloys, other ferrous products, nickel, gold, silver, cobalt, other precious metals, and copper. The company beat market estimates on earnings per share for the second quarter of 2022 by $0.52 but missed on revenue $450 million due to inflationary pressures on the stock. 

On June 22, Morgan Stanley analyst Carlos De Alba maintained an Equal Weight rating on Vale S.A. (NYSE:VALE) stock and lowered the price target to $16 from $22, identifying iron ore futures as a potential headwind for the firm in the near term. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Vale S.A. (NYSE:VALE), with 28 million shares worth more than $573 million. 

You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.

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