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VALE S.A. (VALE) Gains But Lags Market: What You Should Know

VALE S.A. (VALE) closed at $15.59 in the latest trading session, marking a +1.1% move from the prior day. This change lagged the S&P 500's 1.76% gain on the day. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 3.03%.

Heading into today, shares of the company had lost 9.56% over the past month, lagging the Basic Materials sector's loss of 7.76% and the S&P 500's loss of 5.94% in that time.

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 $0.66 per share. This would mark a year-over-year decline of 15.38%. Our most recent consensus estimate is calling for quarterly revenue of $10.33 billion, down 4.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.76 per share and revenue of $41.9 billion. These totals would mark changes of -23.55% and -4.41%, respectively, from last year.

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

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.

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 2.65% lower. VALE S.A. currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, VALE S.A. is holding a Forward P/E ratio of 5.59. For comparison, its industry has an average Forward P/E of 7.3, which means VALE S.A. is trading at a discount to the group.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% 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.

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

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

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Zacks Investment Research