In the latest trading session, VALE S.A. (VALE) closed at $13.56, marking a +2.26% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.64%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.
Heading into today, shares of the company had gained 2.79% over the past month, lagging the Basic Materials sector's gain of 5.72% and outpacing the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of VALE S.A. in its upcoming release. The company is forecasted to report an EPS of $0.52, showcasing a 160% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $10.73 billion, reflecting a 5.97% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $38.07 billion, which would represent changes of +9.89% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for VALE S.A. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 3.46% higher. As of now, VALE S.A. holds a Zacks Rank of #1 (Strong Buy).
With respect to valuation, VALE S.A. is currently being traded at a Forward P/E ratio of 6.56. This expresses a premium compared to the average Forward P/E of 6.45 of its industry.
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 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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