VALE S.A. (VALE) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw VALE S.A. (VALE) ending at $15.30, denoting a -0.84% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.18%. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq increased by 0.1%.
The the stock of company has risen by 4.05% in the past month, leading the Basic Materials sector's gain of 3.98% and the S&P 500's gain of 2.75%.
Market participants will be closely following the financial results of VALE S.A. in its upcoming release. The company's upcoming EPS is projected at $0.81, signifying a 1.22% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $12.32 billion, up 3.13% from the prior-year quarter.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 4.14% higher within the past month. VALE S.A. is currently a Zacks Rank #3 (Hold).
In terms of valuation, VALE S.A. is presently being traded at a Forward P/E ratio of 5.33. This expresses a discount compared to the average Forward P/E of 9.57 of its industry.
The Mining - Iron industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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VALE S.A. (VALE) : Free Stock Analysis Report
