VALE S.A. (VALE) Outpaces Stock Market Gains: What You Should Know
VALE S.A. (VALE) closed the most recent trading day at $22.08, moving +1.05% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.74%.
Heading into today, shares of the company had gained 16.04% over the past month, outpacing the Basic Materials sector's gain of 9.95% and the S&P 500's gain of 3.21% in that time.
In that report, analysts expect VALE to post earnings of $1.25 per share. This would mark year-over-year growth of 468.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.14 billion, up 101.42% from the year-ago period.
VALE's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $59.41 billion. These results would represent year-over-year changes of +117.06% and +48.46%, respectively.
Investors might also notice recent changes to analyst estimates for VALE. These recent revisions tend to reflect the evolving nature of short-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.
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 past month, the Zacks Consensus EPS estimate has moved 5.71% higher. VALE is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that VALE has a Forward P/E ratio of 4.77 right now. This represents a discount compared to its industry's average Forward P/E of 5.3.
We can also see that VALE currently has a PEG ratio of 0.19. 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 0.19 as of yesterday's close.
The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 242, putting it in the bottom 5% 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.
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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