VALE S.A. (VALE) Dips More Than Broader Markets: What You Should Know

VALE S.A. (VALE) closed at $18.09 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day.

Prior to today's trading, shares of the company had gained 1.11% over the past month. This has lagged the Basic Materials sector's gain of 5.63% and the S&P 500's gain of 6.61% in that time.

Investors will be hoping for strength from VALE as it approaches its next earnings release. On that day, VALE is projected to report earnings of $1.10 per share, which would represent year-over-year growth of 1471.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.84 billion, up 98.58% from the year-ago period.

VALE's full-year Zacks Consensus Estimates are calling for earnings of $4.35 per share and revenue of $55.39 billion. These results would represent year-over-year changes of +106.16% and +38.41%, respectively.

Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.84% higher. VALE is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that VALE has a Forward P/E ratio of 4.19 right now. For comparison, its industry has an average Forward P/E of 4.62, which means VALE is trading at a discount to the group.

We can also see that VALE currently has a PEG ratio of 0.17. 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. VALE's industry had an average PEG ratio of 0.17 as of yesterday's close.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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