VALE S.A. Outpaces Stock Market Gains: What You Should Know

The most recent trading session ended with VALE S.A. VALE standing at $10.37, reflecting a +1.47% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.75%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 1%.

Shares of the company have appreciated by 0.59% over the course of the past month, outperforming the Basic Materials sector's gain of 0.53% and lagging the S&P 500's gain of 4.03%.

The upcoming earnings release of VALE S.A. will be of great interest to investors. On that day, VALE S.A. is projected to report earnings of $0.54 per share, which would represent a year-over-year decline of 18.18%. In the meantime, our current consensus estimate forecasts the revenue to be $10.56 billion, indicating a 0.62% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.13 per share and revenue of $40.12 billion. These totals would mark changes of +16.39% and -3.98%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for VALE S.A. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, VALE S.A. holds a Zacks Rank of #3 (Hold).

From a valuation perspective, VALE S.A. is currently exchanging hands at a Forward P/E ratio of 4.8. This signifies no noticeable deviation in comparison to the average Forward P/E of 4.8 for its industry.

Also, we should mention that VALE has a PEG ratio of 3.48. 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 was holding an average PEG ratio of 3.48 at yesterday's closing price.

The Mining - Iron industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 38% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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