7 Best Metal Stocks to Buy According to Analysts

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

Average Upside Potential: 22.60%

Number of Hedge Fund Holders: 36

Vale S.A. (NYSE:VALE) is an important player in the market for base metals, such as copper and nickel, and one of the biggest producers of iron ore worldwide. The company’s primary business is still iron ore, but it is aggressively increasing its base metals sector to meet the rising demand driven by the global energy revolution.

Vale S.A. (NYSE:VALE) showed resilience in its financial performance for the Q4 ended December 31, 2024, despite the drop in iron ore prices. Compared to $13.05 billion during the same time in 2023, the company’s reported net operating revenue for this period was $10.12 billion. However, strong growth in the base metals segment counterbalanced the decline in iron ore. Furthermore, higher production at the Salobo mine helped boost copper income to $964 million, while the Onça Puma mine’s constant output kept nickel revenue at $1.07 million.

Despite the general drop in sales, Vale S.A. (NYSE:VALE) reported adjusted EBITDA of $3.79 billion, which was attributable to a notable surge in copper output, which hit 200 kilotons, the highest level since 2020. This achievement supports the company’s continued efforts to expand its base metals holdings. To strengthen the company’s long-term growth plan, Vale simultaneously started the “New Carajás” program, a daring effort intended to speed up exploration in one of the richest iron ore locations in the world.

Looking ahead, Vale S.A. (NYSE:VALE) is still moving forward with important expansion initiatives. By adding 30 million tons of low-cost iron ore capacity, the Capanema and Vargem Grande expansions are strengthening Vale’s iron ore operations. Additionally, the company has reinforced strategic alliances by starting the development of a new concentration facility in Oman, which is anticipated to start operations in 2027, and purchasing a 15% interest in Minas-Rio.

By continuing the repurchase program and approving $2 billion in dividends, Vale S.A. (NYSE:VALE) has shown confidence in its capacity to generate cash flow and maintain financial stability. To maintain its position as a leader in the mining sector, the company is well-positioned to strike a balance between cost-effectiveness, value generation, and production growth in 2025.