In the latest close session, VALE S.A. (VALE) was down 1.63% at $9.06. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.31%.
The stock of company has fallen by 3.46% in the past month, lagging the Basic Materials sector's gain of 2.56% and the S&P 500's gain of 5.05%.
Market participants will be closely following the financial results of VALE S.A. in its upcoming release. On that day, VALE S.A. is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 2.33%. In the meantime, our current consensus estimate forecasts the revenue to be $10 billion, indicating a 0.78% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.78 per share and a revenue of $39.39 billion, indicating changes of -2.2% and +3.5%, respectively, from the former year.
Investors should also pay attention to any latest changes in 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. VALE S.A. is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, VALE S.A. is holding a Forward P/E ratio of 5.18. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 5.18.
It's also important to note that VALE currently trades at a PEG ratio of 0.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. VALE's industry had an average PEG ratio of 0.3 as of yesterday's close.
The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 96, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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