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VALE S.A. (VALE) Flat As Market Gains: What You Should Know

The latest trading session saw VALE S.A. (VALE) ending at $12.50, denoting no adjustment from its last day's close. This change lagged the S&P 500's 0.15% gain on the day. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.32%.

The company's stock has dropped by 2.57% in the past month, falling short of the Basic Materials sector's gain of 3.94% and the S&P 500's gain of 1.65%.

The investment community will be paying close attention to the earnings performance of VALE S.A. in its upcoming release. The company is predicted to post an EPS of $0.50, indicating a 21.95% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.05 billion, indicating a 7.28% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.56 per share and revenue of $42.39 billion, indicating changes of +39.89% and +1.45%, respectively, compared to the previous year.

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Investors should also pay attention to any latest changes in analyst estimates for VALE S.A. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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, there's been a 1.63% fall in the Zacks Consensus EPS estimate. At present, VALE S.A. boasts a Zacks Rank of #3 (Hold).

In terms of valuation, VALE S.A. is currently trading at a Forward P/E ratio of 4.88. This denotes no noticeable deviation relative to the industry's average Forward P/E of 4.88.

The Mining - Iron industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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VALE S.A. (VALE) : Free Stock Analysis Report

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Zacks Investment Research