In the latest trading session, VALE S.A. (VALE) closed at $15.74, marking a +1.09% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.91%.
Heading into today, shares of the company had gained 18.4% over the past month, outpacing the Basic Materials sector's gain of 9.86% and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results 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. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.07 per share and a revenue of $38.07 billion, representing changes of +13.74% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for VALE S.A. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.97% higher. VALE S.A. is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 7.49. This signifies no noticeable deviation in comparison to the average Forward P/E of 7.49 for its industry.
It's also important to note that VALE currently trades at a PEG ratio of 0.49. 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. The average PEG ratio for the Mining - Iron industry stood at 0.49 at the close of the market yesterday.
The Mining - Iron industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 1, positioning it in the top 1% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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