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

VALE S.A. (VALE) closed at $13.40 in the latest trading session, marking a -1.47% move from the prior day. This change lagged the S&P 500's 1.13% loss on the day. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.18%.

Coming into today, shares of the company had gained 6.5% in the past month. In that same time, the Basic Materials sector lost 3.12%, while the S&P 500 lost 7.59%.

VALE S.A. will be looking to display strength as it nears its next earnings release. In that report, analysts expect VALE S.A. to post earnings of $0.79 per share. This would mark a year-over-year decline of 31.9%. Meanwhile, our latest consensus estimate is calling for revenue of $12.83 billion, up 1.13% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $48.11 billion. These totals would mark changes of -42.41% and -12.69%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for VALE S.A.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.

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.

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 3.29% lower. VALE S.A. is currently a Zacks Rank #3 (Hold).

In terms of valuation, VALE S.A. is currently trading at a Forward P/E ratio of 4.37. This represents a discount compared to its industry's average Forward P/E of 6.18.

Also, we should mention that VALE has a PEG ratio of 1.18. 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 1.18 at yesterday's closing price.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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