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VALE S.A. (VALE) Gains As Market Dips: What You Should Know

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VALE S.A. (VALE) closed at $12.70 in the latest trading session, marking a +0.4% move from the prior day. This move outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the company had lost 15.27% over the past month. This has was narrower than the Basic Materials sector's loss of 19.71% and lagged the S&P 500's gain of 2.02% in that time.

VALE S.A. will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. In that report, analysts expect VALE S.A. to post earnings of $1.22 per share. This would mark a year-over-year decline of 23.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.24 billion, down 14.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.60 per share and revenue of $53.96 billion, which would represent changes of -33.33% and -2.08%, respectively, from the prior year.

Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 7.22% lower. VALE S.A. is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, VALE S.A. is holding a Forward P/E ratio of 3.52. This valuation marks a discount compared to its industry's average Forward P/E of 5.45.

Meanwhile, VALE's PEG ratio is currently 0.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Iron was holding an average PEG ratio of 0.95 at yesterday's closing price.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 242, putting it in the bottom 4% 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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