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VALE S.A. (VALE) closed the most recent trading day at $15.38, moving +0.52% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.
Heading into today, shares of the company had gained 9.86% over the past month, outpacing the Basic Materials sector's gain of 7.23% and the S&P 500's gain of 0.64% in that time.
VALE S.A. will be looking to display strength as it nears its next earnings release. On that day, VALE S.A. is projected to report earnings of $0.68 per share, which would represent a year-over-year decline of 37.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.5 billion, down 22.13% from the year-ago period.
Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 past month, the Zacks Consensus EPS estimate remained stagnant. VALE S.A. is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that VALE S.A. has a Forward P/E ratio of 7.3 right now. For comparison, its industry has an average Forward P/E of 9.53, which means VALE S.A. is trading at a discount to the group.
We can also see that VALE currently has a PEG ratio of 0.37. 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 0.37 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 250, which puts it in the bottom 2% 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.
To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.
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