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Is VALE (VALE) Outperforming Other Basic Materials Stocks This Year?

Zacks Equity Research
·2 min read

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 239 individual stocks and currently holds a Zacks Sector Rank of #9. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. VALE is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for VALE's full-year earnings has moved 23.73% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that VALE has returned about 8.29% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 7.12% on a year-to-date basis. This means that VALE is outperforming the sector as a whole this year.

To break things down more, VALE belongs to the Mining - Iron industry, a group that includes 2 individual companies and currently sits at #1 in the Zacks Industry Rank. Stocks in this group have gained about 8.22% so far this year, so VALE is performing better this group in terms of year-to-date returns.

Investors in the Basic Materials sector will want to keep a close eye on VALE as it attempts to continue its solid performance.


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