In the latest close session, VALE S.A. (VALE) was up +1.45% at $10.50. This move outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow saw a downswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.03%.
The company's shares have seen a decrease of 0.48% over the last month, not keeping up with the Basic Materials sector's gain of 4.31% and the S&P 500's gain of 2.09%.
The investment community will be paying close attention to the earnings performance of VALE S.A. in its upcoming release. The company is expected to report EPS of $0.44, down 21.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.28 billion, up 7.63% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.72 per share and revenue of $37.79 billion. These totals would mark changes of -5.49% and -0.71%, 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 a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 1.78% higher. VALE S.A. is holding a Zacks Rank of #5 (Strong Sell) right now.
In the context of valuation, VALE S.A. is at present trading with a Forward P/E ratio of 6.02. This signifies a discount in comparison to the average Forward P/E of 6.18 for its industry.
The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 2% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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