VALE S.A. (VALE) closed at $9.82 in the latest trading session, marking a +1.13% move from the prior day. This change outpaced the S&P 500's 0.11% loss on the day. Meanwhile, the Dow experienced a rise of 0.91%, and the technology-dominated Nasdaq saw a decrease of 0.82%.
Shares of the company witnessed a gain of 4.75% over the previous month, beating the performance of the Basic Materials sector with its gain of 3.56%, and underperforming the S&P 500's gain of 5.17%.
The upcoming earnings release of VALE S.A. will be of great interest to investors. 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. At the same time, our most recent consensus estimate is projecting a revenue of $10 billion, reflecting a 0.78% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.82 per share and a revenue of $39.39 billion, demonstrating changes of 0% and +3.5%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for VALE S.A. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.47% increase. VALE S.A. is currently a Zacks Rank #3 (Hold).
In terms of valuation, VALE S.A. is presently being traded at a Forward P/E ratio of 5.33. This signifies no noticeable deviation in comparison to the average Forward P/E of 5.33 for its industry.
Also, we should mention that VALE has 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. By the end of yesterday's trading, the Mining - Iron industry had an average PEG ratio of 0.3.
The Mining - Iron industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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