VALE S.A. (VALE) closed the most recent trading day at $16.76, moving +1.95% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq increased by 0.17%.
The company's stock has climbed by 25.5% in the past month, exceeding the Basic Materials sector's gain of 11% and the S&P 500's gain of 0.78%.
The investment community will be closely monitoring the performance of VALE S.A. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.52, marking a 160% rise compared to the same quarter of the previous year. 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.
VALE's full-year Zacks Consensus Estimates are calling for earnings of $2.07 per share and revenue of $38.01 billion. These results would represent year-over-year changes of +13.74% and 0%, respectively.
It is also important to note the recent changes to analyst estimates for VALE S.A. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.65% higher. VALE S.A. is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that VALE S.A. has a Forward P/E ratio of 7.78 right now. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 7.78.
We can additionally observe that VALE currently boasts a PEG ratio of 0.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Mining - Iron industry had an average PEG ratio of 0.47 as trading concluded yesterday.
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 gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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