We recently published a list of 10 Worst Performing Large Cap Stocks to Buy According to Analysts. In this article, we are going to take a look at where Vale S.A. (NYSE:VALE) stands against other worst performing large cap stocks to buy according to analysts.

How Did The Market Perform in Q4 2024?

On January 21, Russell Investment released its Equity Factor report highlighting key trends and performances in global equity markets during the fourth quarter of 2024. The period was marked by significant events, including the conclusion of the US presidential election, which led to heightened expectations of economic growth, deregulation, and lower taxes. These factors contributed to a robust return of 2.7% for the Russell 1000 Index, which tracks the performance of large-cap US companies by market capitalization.

READ ALSO: 10 Best Performing Large Cap Stocks to Buy According to Analysts and 10 Best Small-Cap Growth Stocks to Buy Now.

On the other hand, Developed ex-US Large Cap and Emerging Markets faced declines of 7.4% and 7.8%, respectively. This downturn was attributed to political instability in countries like France and Germany, as well as uncertainty surrounding potential US tariffs. The divergence in performance extended to small-cap stocks as well, with the Russell 2000 Index experiencing a slight increase of 0.3%, while the Developed ex-US Small Cap Index declined by 7.8%.

As per the report, Russell Investments’ global factor portfolios showed varied performance during the quarter. Meanwhile, the Global Large Cap Growth and Momentum portfolios outperformed their benchmarks with excess returns of 2.5% and 1.1%, respectively. On the other hand, the Global Large Cap Low Volatility, Size, Value, and Quality portfolios underperformed, with excess returns ranging from -1.4% to -0.2%. This marked a shift from the previous quarter, where Value and Low Volatility were the top performers.

Moreover, the performance of factor portfolios varied across regions. Meanwhile, the Momentum and Growth factors showed consistent outperformance across US and non-US markets, with Momentum delivering excess returns between +0.1% and +2.1%. However, Growth underperformed in Emerging Markets. On the other hand, the Low Volatility factor underperformed in all regions except Emerging Markets, where it outperformed by +1.0%.

Our Methodology

To curate the list of 10 worst-performing large-cap stocks to buy according to analysts, we used the Finviz stock screener. We aggregated a list of large-cap stocks that have performed negatively over the past year, however, analysts still see upside potential over the next 12 months. Next, we cross-checked the analyst upside potential of each stock from CNN and ranked these stocks in ascending order of analysts’ upside potential. We have also added the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 2024 database. Please note that the data was collected on February 28th, 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Aerial view of a giant iron ore mine, showcasing the mineral deposits of the company's Ferrous Minerals segment.

Vale S.A. (NYSE:VALE)

Market Capitalization: $41.23 Billion

1-Year Performance: -30.10%

Number of Hedge Fund Holders: 36

Analyst Upside Potential: 27.25%

Vale S.A. (NYSE:VALE) is a prominent Brazilian company primarily involved in the mining and production of metals. It extracts and processes various minerals such as iron ore, nickel, copper, gold, silver, and cobalt. The company is recognized as the world’s largest producer of iron ore and nickel.

Vale S.A. (NYSE:VALE) reported results for the fiscal fourth quarter of 2024, indicating some challenges and operational achievements. Its revenue for the quarter decreased 22% year-over-year to $10.1 billion, mainly due to the lower iron ore prices. This also resulted in the stocks falling around 30% over the past year. However, regardless of the challenges due to iron ore prices, the company achieved its highest iron ore production since 2018, reaching 328 million tons in 2024. This was driven by operational stability and strategic project startups. In addition, Vale S.A. (NYSE:VALE) also set a new record for copper production at its Salobo site, highlighting its success in base metals. It is one of the worst-performing large-cap stocks to buy according to analysts.

White Falcon Capital Management stated the following regarding Vale S.A. (NYSE:VALE) in its Q4 2024 investor letter:

“While this uncertainty in Brazil has prompted many investors to offload Brazilian stocks, we’ve taken advantage of this environment to establish a position in Vale S.A. (NYSE:VALE). Vale is among the world’s largest and lowest-cost iron ore producers and boasts a growing portfolio of high-demand copper and nickel assets. It is currently trading at a P/E of 5.3x with a 8% dividend yield.”

Overall, VALE ranks 5th on our list of worst performing large cap stocks to buy according to analysts. While we acknowledge the potential of VALE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VALE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article is originally published at Insider Monkey.