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Has VALE (VALE) Outpaced Other Basic Materials Stocks This Year?

Zacks Equity Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Investors focused on the Basic Materials space have likely heard of VALE (VALE), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

VALE is a member of the Basic Materials sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. VALE is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for VALE's full-year earnings has moved 16.37% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, VALE has returned 2.12% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 15.68% on average. This means that VALE is outperforming the sector as a whole this year.

Looking more specifically, VALE belongs to the Mining - Iron industry, a group that includes 2 individual stocks and currently sits at #1 in the Zacks Industry Rank. This group has gained an average of 2.19% so far this year, so VALE is slightly underperforming its industry in this area.

Investors with an interest in Basic Materials stocks should continue to track VALE. The stock will be looking to continue its solid performance.


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