In the latest close session, VALE S.A. (VALE) was up +1.51% at $14.11. This move outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Shares of the company witnessed a gain of 8.85% over the previous month, beating the performance of the Basic Materials sector with its gain of 6.36%, and the S&P 500's gain of 2.26%.
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 $0.52, up 160% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $10.73 billion, indicating a 5.97% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.99 per share and a revenue of $38.07 billion, signifying shifts of +9.34% and 0%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for VALE S.A. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.74% higher. As of now, VALE S.A. holds a Zacks Rank of #1 (Strong Buy).
Investors should also note VALE S.A.'s current valuation metrics, including its Forward P/E ratio of 6.8. This expresses no noticeable deviation compared to the average Forward P/E of 6.8 of its industry.
Also, we should mention that VALE has a PEG ratio of 0.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Mining - Iron industry stood at 0.45 at the close of the market yesterday.
The Mining - Iron industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 1, placing it within the top 1% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
VALE S.A. (VALE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
