Best Stock for 2013: Vale
First, the company has significant exposure to emerging markets, especially China (its biggest customer by a landslide) and Brazil. On top of that, the company has made some important internal improvements, such as scaling back its production portfolio and selling non-core assets.
Last but not least, Vale is a steal. “Shares are down from a high above $35 in early 2011 and were virtually flat for 2012. Vale trades at 6.3x 2013 enterprise value to EBITDA, below the group average of 6.6x,” Stephanie writes.
That leaves room for plenty of upside — while downside is limited thanks to growing production and the simple fact that emerging markets are resource-hungry.
We’ll just have to wait and see if they’re hungry enough for Vale to eat up some profits and rumble to the top of this list in the coming months.