VALE S.A. (VALE) Laps the Stock Market: Here's Why
The most recent trading session ended with VALE S.A. (VALE) standing at $13.37, reflecting a +1.29% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.43%. Elsewhere, the Dow saw an upswing of 0.19%, while the tech-heavy Nasdaq appreciated by 0.71%.
The company's shares have seen a decrease of 2.94% over the last month, surpassing the Basic Materials sector's loss of 3.37% and falling behind the S&P 500's loss of 2.1%.
The investment community will be paying close attention to the earnings performance of VALE S.A. in its upcoming release. It is anticipated that the company will report an EPS of $0.71, marking a 27.55% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $11.23 billion, indicating a 13.09% growth compared to the corresponding quarter of the prior year.
VALE's full-year Zacks Consensus Estimates are calling for earnings of $2.05 per share and revenue of $41.01 billion. These results would represent year-over-year changes of -43.21% and -6.45%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for VALE S.A. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 6.63% higher. VALE S.A. is currently a Zacks Rank #2 (Buy).
In the context of valuation, VALE S.A. is at present trading with a Forward P/E ratio of 6.44. This represents a discount compared to its industry's average Forward P/E of 7.28.
The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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VALE S.A. (VALE) : Free Stock Analysis Report
