The 7 most recommended actions by experts this week; Vale is leader

In a week of few changes in stock portfolios recommended by brokers, Vale (VALE3) remains as the main bet of analysts. Despite the recent declines seen in the price of iron ore (the main product sold by the company), Vale’s shares remain with three investment indications, from a total of seven institutions surveyed by the UOL.

Another six companies complete the list of highlights this week, all with two nominations from experts. See below the main choices of the week (from 23 to 27/8)*:

  • Voucher (VALE3): 3 recommendations
  • B3 (B3SA3): 2 recommendations
  • Inter Unit Bank (BIDI11): 2 recommendations
  • Gerdau PN (GGBR4): 2 recommendations
  • Petrobras PN (PETR4): 2 recommendations
  • SulAmérica Unit (SULA11): 2 recommendations
  • Let’s go (VAMO3): 2 recommendations

*Survey based on the portfolios recommended by the following institutions: Ativa Investimentos, Elite Investimentos, Guide Investimentos, Mirae Asset Corretora, MyCap Investimentos, Terra Investimentos and XP Investimentos.

Vale remains attractive despite the turmoil

The horizon of high iron ore prices, one of the main reasons for the good performance of Vale’s shares, shows signs of change in the short term, but the movement so far has not reduced the company’s attractiveness.

Recently, uncertainties regarding the level of demand for the commodity from China, the world’s largest steel producer, caused iron ore futures contracts traded in Dalian to drop for the fifth consecutive week.

In the last Monday (23), there was another drop, with the most traded iron ore contract in Dalian (for January 2022) ending the day with a decline of 1.1%. With that, the quotes are around a minimum of seven and a half months.

Despite the volatile environment, Vale’s shares remain in the portfolios indicated by Elite Investimentos, Guide and Mirae Asset Corretora for this week.

“Even with the recent drop in the price of iron ore, we still point out that the share price [da Vale] is extremely discounted,” says Mirae, in a report. “Demand for its products will remain strong and its cash generation will strengthen, allowing it to pay new earnings to its shareholders.”

Vale’s recommendations were also sustained in the face of negative news in the domestic scenario. On August 18, news emerged that the Public Prosecutor’s Office of the State of Minas Gerais (MP-MG) asked for Samarco’s legal personality to be disregarded in the company’s judicial reorganization process. With this, the parent companies Vale and BHP Bilinton would have to bear all of Samarco’s debts, which reach approximately R$ 50 billion.

Amidst the turmoil, Vale announced the signing of a memorandum of understanding with Ternium to develop solutions for the steel industry focused on reducing carbon dioxide (CO2) emissions.

According to a statement to the market, the companies intend to carry out feasibility studies to invest in an iron ore briquette factory located at Ternium Brasil’s facilities and in units to produce metals with low carbon emissions.

Highlights of the week include six other companies

The second block of highlights of the week in the recommended portfolios brings shares from six other companies — all with two investment indications, as has been happening throughout August.

With few changes compared to the last survey, the current group brings together the shares of the B3 Stock Exchange again; of Inter Bank; the Gerdau steel company; of the oil giant Petrobras; and the SulAmérica insurance company.

The novelty on this week’s list comes from the company Vamos Locação de Trucks, Máquinas e Equipamentos, whose shares debuted in the portfolios prepared by Ativa Investimentos and MyCap.

Weekly portfolios have only 8 changes

In this final stretch of August, three of the seven institutions monitored by the UOL they chose to repeat the stock portfolios they had indicated last week: Mirae Asset Corretora, Terra Investimentos and XP.

As a result, there were only eight changes to the portfolios, out of a total of 40 recommendations made by analysts.

Brokers Ativa Investimentos, Elite, Guide and MyCap made two changes, each, to their asset selections.

Changes and complete portfolios indicated

Activates Investments

Elite Investments

  • Included: Inter PN Bank (BIDI4) and Méliuz (CASH3).
  • Withdrew: Allied Tecnologia (ALLD3) and Metalúrgica Gerdau PN (GOAU4).
  • Recommended portfolio: Alpargatas PN (ALPA4), Banco Inter PN (BIDI4), M. Dias Branco (MDIA3), Méliuz (CASH3) and Vale (VALE3).

Investments Guide

Mirae Asset Brokerage

Note: no changes compared to last week.

MyCap Investments

Land Investments

Note: no changes compared to last week.

XP Investments

Note: no changes compared to last week.

The price and performance of the shares can be seen on the quotes page of the UOL Economy.