In the latest trading session, VALE S.A. (VALE) closed at $19.07, marking a -1.24% move from the previous day. This move was narrower than the S&P 500’s daily loss of 1.3%. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.41%.
Prior to today’s trading, shares of the company had gained 8.18% over the past month. This has outpaced the Basic Materials sector’s gain of 6.93% and the S&P 500’s loss of 5.33% in that time.
Investors will be hoping for strength from VALE S.A. as it approaches its next earnings release. On that day, VALE S.A. is projected to report earnings of $0.88 per share, which would represent a year-over-year decline of 22.12%. Our most recent consensus estimate is calling for quarterly revenue of $12.3 billion, down 2.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $48.74 billion, which would represent changes of -28.33% and -11.55%, respectively, from the prior year.
Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. 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 company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 44.5% higher. VALE S.A. currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note VALE S.A.’s current valuation metrics, including its Forward P/E ratio of 4.99. This valuation marks a discount compared to its industry’s average Forward P/E of 6.07.
Investors should also note that VALE has a PEG ratio of 0.72 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Mining – Iron industry currently had an average PEG ratio of 0.72 as of yesterday’s close.
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 includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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