In the latest close session, VALE S.A. (VALE) was down 2.74% at $9.94. The stock trailed the S&P 500, which registered a daily loss of 0.79%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq depreciated by 0.92%.
Shares of the company witnessed a gain of 7.69% over the previous month, beating the performance of the Basic Materials sector with its gain of 4.52%, and the S&P 500's gain of 5.22%.
The investment community will be paying close attention to the earnings performance of VALE S.A. in its upcoming release. In that report, analysts expect VALE S.A. to post earnings of $0.39 per share. This would mark a year-over-year decline of 9.3%. Alongside, our most recent consensus estimate is anticipating revenue of $10 billion, indicating a 0.78% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.77 per share and a revenue of $39.39 billion, signifying shifts of -2.75% and +3.5%, respectively, from the last year.
Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. 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 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.
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 witnessed a 0.22% decrease. VALE S.A. is currently a Zacks Rank #3 (Hold).
In terms of valuation, VALE S.A. is currently trading at a Forward P/E ratio of 5.76. This denotes no noticeable deviation relative to the industry average Forward P/E of 5.76.
One should further note that VALE currently holds a PEG ratio of 0.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Mining - Iron stocks are, on average, holding a PEG ratio of 0.33 based on yesterday's closing prices.
The Mining - Iron industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% 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.
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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