VALE S.A. (VALE) closed the most recent trading day at $22.64, moving -0.7% from the previous trading session. This change lagged the S&P 500's daily gain of 0.58%.
Prior to today's trading, shares of the company had gained 10.15% over the past month. This has outpaced the Basic Materials sector's loss of 4.41% and the S&P 500's gain of 2.17% in that time.
VALE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.45, up 559.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.95 billion, up 125.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.36 per share and revenue of $66.81 billion. These totals would mark changes of +154.03% and +66.94%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 6.83% higher within the past month. VALE is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note VALE's current valuation metrics, including its Forward P/E ratio of 4.25. This represents a discount compared to its industry's average Forward P/E of 4.88.
It is also worth noting that VALE currently has a PEG ratio of 0.13. 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 0.13 at yesterday's closing price.
The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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