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

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In the latest trading session, VALE S.A. (VALE) closed at $15.48, marking a +1.11% move from the previous day. This change outpaced the S&P 500's 1.22% loss on the day. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.54%.

Prior to today's trading, shares of the company had gained 8.97% over the past month. This has outpaced the Basic Materials sector's loss of 1.19% and the S&P 500's loss of 6.58% in that time.

VALE S.A. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.74, down 32.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.5 billion, down 22.13% from the year-ago period.

It is also important to note the recent changes to analyst estimates for VALE S.A.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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.36% lower. VALE S.A. currently has a Zacks Rank of #4 (Sell).

Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 7.29. This represents a discount compared to its industry's average Forward P/E of 9.18.

Also, we should mention that VALE has a PEG ratio of 0.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VALE's industry had an average PEG ratio of 0.7 as of yesterday's close.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 252, which puts it in the bottom 2% 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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