In the latest trading session, VALE S.A. (VALE) closed at $11.43, marking a -0.61% move from the previous day. This change lagged the S&P 500’s daily gain of 1.54%. Elsewhere, the Dow gained 1.59%, while the tech-heavy Nasdaq added 0.98%.
Coming into today, shares of the company had gained 0.09% in the past month. In that same time, the Basic Materials sector gained 3.48%, while the S&P 500 gained 8%.
VALE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.74, up 105.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.20 billion, up 9.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.46 per share and revenue of $36.19 billion, which would represent changes of -8.75% and -3.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for VALE. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 6.18% higher. VALE currently has a Zacks Rank of #3 (Hold).
In terms of valuation, VALE is currently trading at a Forward P/E ratio of 7.88. Its industry sports an average Forward P/E of 8.28, so we one might conclude that VALE is trading at a discount comparatively.
The Mining – Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% 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.
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