We recently published a list of 10 Best Stocks to Buy and Hold For 2025. In this article, we are going to take a look at where Vale S.A. (NYSE:VALE) stands against other best stocks to buy and hold for 2025.
Stocks have been performing well lately as they seem to have been influenced by the excitement around artificial intelligence (AI) as well as the new administration. CNBC reported that stocks rose on January 22, with the S&P 500 hitting a new all-time high, as technology stocks rallied on AI optimism and President Trump’s new term in office.
On Wednesday, January 22, stocks finished higher as all 3 of the major indexes ended the session in the green. The S&P 500 increased by 0.61% after reaching an intraday record of 6,100.81 before closing at 6,086.37. The Nasdaq Composite excelled and rose 1.28% to reach 20,009.34, underscoring the outperformance of tech stocks. The Dow Jones Industrial Average advanced by 130.92 points, or 0.3%, to close at 44,156.73.
President Trump also recently announced a joint venture named “Stargate,” involving OpenAI, Oracle, and Softbank, to invest at least $500 billion in AI infrastructure within the US. Stocks rose because of solid earnings reports and investors continued to pile into the AI space following this recent announcement by the new administration.
Keith Lerner, Truist’s co-chief investment officer, pointed out that a combination of a resilient economy, easing inflation, stabilizing of interest rates, and a strong start to the earnings season has created a favorable environment for the market. He noted that AI and technology continue to be key drivers of this bull market.
Another key factor playing a role in this market rally is the optimism around Trump’s agenda. Investors are hoping that Trump will ease regulations and reduce corporate taxes, which could lead to an increase in profits.
Methodology
To compile our list of the 10 best stocks to buy and hold for 2025, we used the Finviz stock screener to look for stocks that analysts believe will gain more than 30% in the next 12 months. We sorted our results based on market capitalization and picked the top 25 stocks. Finally, we ranked the 10 best stocks to buy and hold for 2025 based on their average price target upside potential according to analysts as of January 22, 2025. Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is Vale S.A. (VALE) the Best Stock to Buy and Hold For 2025?
Aerial view of a giant iron ore mine, showcasing the mineral deposits of the company's Ferrous Minerals segment.
Average Price Target Upside Potential According to Analysts: 57.84%
Number of Hedge Fund Holders: 41
Vale S.A. (NYSE:VALE) is a global mining and metals company that is based in Rio de Janeiro, Brazil and has a presence in over 20 countries. It is the world’s largest producer of iron ore and nickel and it also has operations in manganese, ferroalloys, copper, gold, silver, and cobalt. Vale S.A. (NYSE:VALE) is one of the best stocks to buy and hold for 2025 according to analysts.
The company is strategically focused on increasing its production and enhancing operational excellence. In Q3 2024, Vale S.A.’s (NYSE:VALE) iron ore production reached its highest levels in over 5 years and this also marked the fourth consecutive quarter of year-on-year growth in iron ore production. Vale S.A. (NYSE:VALE) reported that its Vargem Grande 1 project commenced wet processing operations in September 2024, one month ahead of schedule. The project will help the company reach its iron ore production target of 340-360 million tons by 2026 by adding approximately 15 million tons per year of iron ore capacity while also improving the site’s iron content.
White Falcon Capital Management, an investment fund manager, noted in its fourth-quarter 2024 investor letter that Brazil’s economic challenges and macroeconomic uncertainty have caused many investors to sell Brazilian stocks. The investment management firm invested in Vale S.A. (NYSE:VALE) and noted that the stock was trading at a price-to-earnings ratio of 5.3 with an 8% dividend yield. White Falcon Capital Management also highlighted that Vale S.A. (NYSE:VALE) is one of the largest and lowest-cost iron ore producers globally and boasts a growing portfolio of high-demand copper and nickel assets.
Overall, VALE ranks 4th on our list of best stocks to buy and hold for 2025. While we acknowledge the potential of VALE, our conviction lies in the belief that some 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.
