VALE S.A. (VALE) closed the most recent trading day at $17.01, moving -1.39% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.7%. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq gained 1.23%.
Coming into today, shares of the company had lost 4.06% in the past month. In that same time, the Basic Materials sector gained 1.5%, while the S&P 500 gained 0.18%.
Investors will be hoping for strength from VALE as it approaches its next earnings release. In that report, analysts expect VALE to post earnings of $1.07 per share. This would mark year-over-year growth of 1428.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.84 billion, up 98.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.13 per share and revenue of $52.62 billion, which would represent changes of +95.73% and +31.48%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for VALE. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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.
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 21.54% higher. VALE is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, VALE currently has a Forward P/E ratio of 4.17. For comparison, its industry has an average Forward P/E of 4.53, which means VALE is trading at a discount to the group.
Investors should also note that VALE has a PEG ratio of 0.17 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Mining – Iron was holding an average PEG ratio of 0.17 at yesterday’s closing price.
The Mining – Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 8, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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