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VALE S.A. (VALE) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, VALE S.A. (VALE) closed at $13.49, marking a -1.53% move from the previous day. This move lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.07%.

Coming into today, shares of the company had gained 12.39% in the past month. In that same time, the Basic Materials sector gained 0.97%, while the S&P 500 gained 2.14%.

VALE will be looking to display strength as it nears its next earnings release, which is expected to be March 27, 2019. The company is expected to report EPS of $0.62, up 72.22% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.67 billion, up 16.44% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for VALE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.56% higher. VALE currently has a Zacks Rank of #2 (Buy).

Investors should also note VALE's current valuation metrics, including its Forward P/E ratio of 6.63. This valuation marks a discount compared to its industry's average Forward P/E of 6.9.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 2, putting it in the top 1% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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