VALE S.A. (VALE) Gains As Market Dips: What You Should Know
VALE S.A. (VALE) closed at $20.48 in the latest trading session, marking a +0.74% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.97%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.49%.
Coming into today, shares of the company had gained 2.57% in the past month. In that same time, the Basic Materials sector gained 3.86%, while the S&P 500 gained 4.71%.
Investors will be hoping for strength from VALE S.A. as it approaches its next earnings release. On that day, VALE S.A. is projected to report earnings of $0.97 per share, which would represent a year-over-year decline of 14.16%. Meanwhile, our latest consensus estimate is calling for revenue of $12.19 billion, down 3.56% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.48 per share and revenue of $57.45 billion. These totals would mark changes of -17.04% and +4.26%, respectively, from last year.
Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 35.42% higher within the past month. VALE S.A. is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, VALE S.A. is holding a Forward P/E ratio of 4.54. For comparison, its industry has an average Forward P/E of 6.6, which means VALE S.A. is trading at a discount to the group.
Also, we should mention that VALE has a PEG ratio of 0.65. 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. Mining - Iron stocks are, on average, holding a PEG ratio of 0.65 based on yesterday's closing prices.
The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 2, which puts it in the top 1% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.
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