VALE S.A. (VALE) closed the latest trading day at $10.09, indicating a -0.1% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.56%, and the technology-centric Nasdaq increased by 0.87%.
Heading into today, shares of the company had gained 7.91% over the past month, outpacing the Basic Materials sector's gain of 0.34% and the S&P 500's loss of 5.28% in that time.
Analysts and investors alike will be keeping a close eye on the performance of VALE S.A. in its upcoming earnings disclosure. On that day, VALE S.A. is projected to report earnings of $0.43 per share, which would represent year-over-year growth of 10.26%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.81 billion, indicating a 4.09% increase compared to the same quarter of the previous year.
VALE's full-year Zacks Consensus Estimates are calling for earnings of $1.87 per share and revenue of $39.97 billion. These results would represent year-over-year changes of +2.75% and +5.02%, respectively.
Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. VALE S.A. currently has a Zacks Rank of #3 (Hold).
In the context of valuation, VALE S.A. is at present trading with a Forward P/E ratio of 5.41. This signifies no noticeable deviation in comparison to the average Forward P/E of 5.41 for its industry.
It is also worth noting that VALE currently has a PEG ratio of 0.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining - Iron industry currently 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 group has a Zacks Industry Rank of 83, putting it in the top 34% 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.
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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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