VALE S.A. (VALE) Gains As Market Dips: What You Should Know
VALE S.A. (VALE) closed at $11.16 in the latest trading session, marking a +0.81% move from the prior day. This change outpaced the S&P 500's 0.19% loss on the day. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq gained 0.04%.
The the stock of company has risen by 1.65% in the past month, lagging the Basic Materials sector's gain of 3.7% and the S&P 500's gain of 1.95%.
Market participants will be closely following the financial results of VALE S.A. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.57, reflecting a 13.64% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.42 billion, showing a 1.89% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.14 per share and revenue of $39.55 billion. These totals would mark changes of +16.94% and -5.34%, respectively, from last year.
Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the past month, there's been a 0.68% rise in the Zacks Consensus EPS estimate. VALE S.A. currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, VALE S.A. is currently exchanging hands at a Forward P/E ratio of 5.17. This signifies no noticeable deviation in comparison to the average Forward P/E of 5.17 for its industry.
It's also important to note that VALE currently trades at a PEG ratio of 3.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Mining - Iron industry was having an average PEG ratio of 3.74.
The Mining - Iron industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 38% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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VALE S.A. (VALE) : Free Stock Analysis Report