In the latest trading session, VALE S.A. (VALE) closed at $13.52, marking a +1.35% move from the previous day. This move outpaced the S&P 500's daily loss of 0.11%.
Coming into today, shares of the company had lost 9.99% in the past month. In that same time, the Basic Materials sector gained 6.23%, while the S&P 500 gained 4.61%.
VALE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.08, up 28.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.08 billion, up 30.83% from the year-ago period.
VALE's full-year Zacks Consensus Estimates are calling for earnings of $4.25 per share and revenue of $54.79 billion. These results would represent year-over-year changes of +101.42% and +36.92%, respectively.
Investors might also notice recent changes to analyst estimates for VALE. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 15.09% lower. VALE is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, VALE is currently trading at a Forward P/E ratio of 3.14. Its industry sports an average Forward P/E of 5.19, so we one might conclude that VALE is trading at a discount comparatively.
Meanwhile, VALE's PEG ratio is currently 0.17. 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 was holding an average PEG ratio of 0.17 at yesterday's closing price.
The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 251, putting it in the bottom 2% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.
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