In the latest close session, VALE S.A. (VALE) was down 4.79% at $9.35. This move lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.91%.
Heading into today, shares of the company had gained 0.2% over the past month, outpacing the Basic Materials sector's loss of 0% and lagging the S&P 500's gain of 1.44%.
Investors will be eagerly watching for the performance of VALE S.A. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.44, marking a 2.33% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10 billion, showing a 0.78% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.78 per share and revenue of $39.39 billion, which would represent changes of -2.2% and +3.5%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. VALE S.A. is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, VALE S.A. is currently exchanging hands at a Forward P/E ratio of 5.52. For comparison, its industry has an average Forward P/E of 5.52, which means VALE S.A. is trading at no noticeable deviation to the group.
It is also worth noting that VALE currently has a PEG ratio of 0.32. 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 Mining - Iron industry had an average PEG ratio of 0.32 as trading concluded yesterday.
The Mining - Iron industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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