The latest trading session saw VALE S.A. (VALE) ending at $9, denoting a -1.42% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 2.24%. On the other hand, the Dow registered a loss of 1.73%, and the technology-centric Nasdaq decreased by 3.07%.
The company's shares have seen a decrease of 10.31% over the last month, not keeping up with the Basic Materials sector's loss of 4.64% and the S&P 500's loss of 4.17%.
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 $0.38 per share. This would mark a year-over-year decline of 2.56%. In the meantime, our current consensus estimate forecasts the revenue to be $8.5 billion, indicating a 0.46% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.84 per share and a revenue of $39.23 billion, representing changes of +1.1% and +3.08%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for VALE S.A. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.07% decrease. Right now, VALE S.A. possesses a Zacks Rank of #3 (Hold).
Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 4.95. This represents no noticeable deviation compared to its industry's average Forward P/E of 4.95.
It's also important to note that VALE currently trades at a PEG ratio of 0.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Mining - Iron industry currently had an average PEG ratio of 0.28 as of yesterday's close.
The Mining - Iron industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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