In the latest trading session, VALE S.A. (VALE) closed at $13.10, marking a +1.39% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.14%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the company had gained 1.81% over the past month, lagging the Basic Materials sector's gain of 4.09% and outpacing the S&P 500's gain of 0.94%.
The investment community will be paying close attention to the earnings performance of VALE S.A. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 160% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.73 billion, indicating a 5.97% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2 per share and revenue of $38.07 billion, indicating changes of +9.89% and +0.04%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for VALE S.A. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 past month, there's been a 1.4% rise in the Zacks Consensus EPS estimate. At present, VALE S.A. boasts a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that VALE S.A. has a Forward P/E ratio of 6.48 right now. This denotes no noticeable deviation relative to the industry average Forward P/E of 6.48.
The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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