VALE S.A. (VALE) closed at $9.98 in the latest trading session, marking a -0.6% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. On the other hand, the Dow registered a gain of 1.01%, and the technology-centric Nasdaq decreased by 0.14%.
Prior to today's trading, shares of the company had gained 6.47% over the past month. This has outpaced the Basic Materials sector's gain of 0.34% and the S&P 500's loss of 6.22% in that time.
Market participants will be closely following the financial results of VALE S.A. in its upcoming release. In that report, analysts expect VALE S.A. to post earnings of $0.43 per share. This would mark year-over-year growth of 10.26%. Simultaneously, our latest consensus estimate expects the revenue to be $8.81 billion, showing a 4.09% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.87 per share and a revenue of $39.97 billion, representing changes of +2.75% and +5.02%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for VALE S.A. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.08% higher. Currently, VALE S.A. is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, VALE S.A. is presently being traded at a Forward P/E ratio of 5.38. This signifies no noticeable deviation in comparison to the average Forward P/E of 5.38 for its industry.
One should further note that VALE currently holds a PEG ratio of 0.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VALE's industry had an average PEG ratio of 0.31 as of yesterday's close.
The Mining - Iron industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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VALE S.A. (VALE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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