VALE S.A. (VALE) Stock Sinks As Market Gains: What You Should Know
VALE S.A. (VALE) closed the most recent trading day at $22.32, moving -0.45% from the previous trading session. This move lagged the S&P 500's daily gain of 0.35%.
Prior to today's trading, shares of the company had gained 0.09% over the past month. This has outpaced the Basic Materials sector's loss of 1% and lagged the S&P 500's gain of 3.64% in that time.
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 $1.51 per share. This would mark year-over-year growth of 586.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.95 billion, up 125.47% from the year-ago period.
VALE's full-year Zacks Consensus Estimates are calling for earnings of $6.09 per share and revenue of $66.81 billion. These results would represent year-over-year changes of +188.63% and +66.94%, respectively.
Any recent changes to analyst estimates for VALE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 21.28% higher. VALE currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that VALE has a Forward P/E ratio of 3.68 right now. For comparison, its industry has an average Forward P/E of 4.48, which means VALE is trading at a discount to the group.
We can also see that VALE currently has a PEG ratio of 0.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Iron industry currently had an average PEG ratio of 0.11 as of yesterday's close.
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 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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