Q3 Return: +19%
YTD Return: -24%
Investor: Stephanie Link
Stephanie Link’s pick of Vale (VALE) — the world’s largest producer of iron ore — actually had a great third quarter. Since July 1, the stock has soared more than 19%, which is better than three times the broader market’s gains.
The bad news, though, is that run just brings VALE’s 2013 from terrible to not-so-bad. At the halfway point, Vale’s year-to-date total return was 35% in the red; those losses have been shaved to 24%, meaning VALE would be lucky to break even for 2013.
Then again, JPMorgan is bullish on the stock thanks to its recent cost-cutting efforts, and gave VALE a $25 price target. That’s 16% upside from its share price at the start of the year. On top of that, Vale boasts a hefty dividend, which currently yields more than 5%.