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VALE S.A. (VALE) Outpaces Stock Market Gains: What You Should Know

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Zacks Equity Research
·3 min read
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VALE S.A. (VALE) closed the most recent trading day at $16.75, moving +1.45% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.98%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.5%.

Investors will be hoping for strength from VALE as it approaches its next earnings release. In that report, analysts expect VALE to post earnings of $1.08 per share. This would mark year-over-year growth of 83.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.27 billion, up 33.18% from the year-ago period.

Any recent changes to analyst estimates for VALE should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

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 14.73% higher within the past month. VALE is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note VALE's current valuation metrics, including its Forward P/E ratio of 5.22. For comparison, its industry has an average Forward P/E of 6.26, which means VALE is trading at a discount to the group.

It is also worth noting that VALE currently has a PEG ratio of 0.24. 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. Mining - Iron stocks are, on average, holding a PEG ratio of 0.24 based on yesterday's closing prices.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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