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VALE S.A. (VALE) Gains But Lags Market: What You Should Know

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In the latest trading session, VALE S.A. (VALE) closed at $17.51, marking a +0.46% move from the previous day. This change lagged the S&P 500's 1.45% gain on the day. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq added 0.44%.

Heading into today, shares of the company had gained 14.37% over the past month, outpacing the Basic Materials sector's gain of 0.61% and the S&P 500's loss of 3.26% in that time.

Investors will be hoping for strength from VALE S.A. as it approaches its next earnings release. In that report, analysts expect VALE S.A. to post earnings of $0.85 per share. This would mark a year-over-year decline of 22.02%. Our most recent consensus estimate is calling for quarterly revenue of $13.1 billion, down 11.29% from the year-ago period.

Investors might also notice recent changes to analyst estimates for VALE S.A.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 27.17% higher. VALE S.A. is currently a Zacks Rank #3 (Hold).

Looking at its valuation, VALE S.A. is holding a Forward P/E ratio of 6.5. This valuation marks a discount compared to its industry's average Forward P/E of 8.54.

Also, we should mention that VALE has a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VALE's industry had an average PEG ratio of 0.62 as of yesterday's close.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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