VALE S.A. (VALE) ended the recent trading session at $14.93, demonstrating a +2.19% change from the preceding day's closing price. This change outpaced the S&P 500's 2.06% loss on the day. Elsewhere, the Dow saw a downswing of 1.76%, while the tech-heavy Nasdaq depreciated by 2.39%.
The stock of company has risen by 11.1% in the past month, leading the Basic Materials sector's gain of 7.03% and the S&P 500's gain of 1.63%.
Analysts and investors alike will be keeping a close eye on the performance of VALE S.A. in its upcoming earnings disclosure. On that day, VALE S.A. is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 160%. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.07 per share and revenue of $38.07 billion, indicating changes of +13.74% and 0%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for VALE S.A. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 2.97% higher. VALE S.A. is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, VALE S.A. is holding a Forward P/E ratio of 7.02. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 7.02.
Also, we should mention that VALE has a PEG ratio of 0.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Mining - Iron industry had an average PEG ratio of 0.46.
The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% of all 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.
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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