VALE S.A. (VALE) closed at $18.54 in the latest trading session, marking a -1.44% move from the prior day. This change was narrower than the S&P 500’s daily loss of 1.64%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.41%.
Prior to today’s trading, shares of the company had gained 17.49% over the past month. This has outpaced the Basic Materials sector’s gain of 3.76% and the S&P 500’s gain of 0.73% in that time.
Wall Street will be looking for positivity from VALE S.A. as it approaches its next earnings report date. This is expected to be July 28, 2022. In that report, analysts expect VALE S.A. to post earnings of $1.28 per share. This would mark a year-over-year decline of 19.5%. Our most recent consensus estimate is calling for quarterly revenue of $14.24 billion, down 14.58% from the year-ago period.
VALE’s full-year Zacks Consensus Estimates are calling for earnings of $4.48 per share and revenue of $53.96 billion. These results would represent year-over-year changes of -17.04% and -2.08%, respectively.
Investors should also note any recent changes to analyst estimates for VALE S.A.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.29% higher. VALE S.A. is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, VALE S.A. is holding a Forward P/E ratio of 4.2. Its industry sports an average Forward P/E of 5.92, so we one might conclude that VALE S.A. is trading at a discount comparatively.
Meanwhile, VALE’s PEG ratio is currently 1.13. 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. The Mining – Iron was holding an average PEG ratio of 1.13 at yesterday’s closing price.
The Mining – Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% 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.
To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.
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