VALE S.A. (VALE) closed the most recent trading day at $12.92, moving -1.75% from the previous trading session. This change lagged the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.02%.
Coming into today, shares of the company had lost 3.17% in the past month. In that same time, the Basic Materials sector lost 4.7%, while the S&P 500 lost 7.95%.
Wall Street will be looking for positivity from VALE S.A. as it approaches its next earnings report date. In that report, analysts expect VALE S.A. to post earnings of $0.83 per share. This would mark a year-over-year decline of 28.45%. Our most recent consensus estimate is calling for quarterly revenue of $12.83 billion, up 1.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.21 per share and revenue of $48.11 billion. These totals would mark changes of -40.56% and -12.69%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for VALE S.A.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. VALE S.A. is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that VALE S.A. has a Forward P/E ratio of 4.1 right now. Its industry sports an average Forward P/E of 6.07, so we one might conclude that VALE S.A. is trading at a discount comparatively.
We can also see that VALE currently has a PEG ratio of 1.1. 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. The Mining - Iron was holding an average PEG ratio of 1.1 at yesterday's closing price.
The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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