In the latest trading session, VALE S.A. (VALE) closed at $10.65, marking a +0.09% move from the previous day. This change outpaced the S&P 500's 2.37% loss on the day. Elsewhere, the Dow lost 1.92%, while the tech-heavy Nasdaq lost 3.02%.
Coming into today, shares of the company had lost 5.17% in the past month. In that same time, the Basic Materials sector gained 0.85%, while the S&P 500 lost 2.31%.
Wall Street will be looking for positivity from VALE as it approaches its next earnings report date. The company is expected to report EPS of $0.77, up 113.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.44 billion, up 12.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.71 per share and revenue of $37.68 billion, which would represent changes of +6.88% and +0.3%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for VALE. These recent revisions tend to reflect the evolving nature of short-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. 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 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. The Zacks Consensus EPS estimate has moved 16.9% higher within the past month. VALE is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note VALE's current valuation metrics, including its Forward P/E ratio of 6.23. For comparison, its industry has an average Forward P/E of 6, which means VALE is trading at a premium to the group.
Also, we should mention that VALE has a PEG ratio of 0.28. 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 0.28 as of yesterday's close.
The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 1, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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