Advertisement
Canada markets open in 6 hours 6 minutes

  • S&P/TSX

    21,740.20
    -159.79 (-0.73%)
     

  • S&P 500

    5,061.82
    -61.59 (-1.20%)
     

  • DOW

    37,735.11
    -248.13 (-0.65%)
     

  • CAD/USD

    0.7251
    -0.0003 (-0.04%)
     

  • CRUDE OIL

    85.79
    +0.38 (+0.44%)
     

  • Bitcoin CAD

    87,455.58
    -4,332.02 (-4.72%)
     

  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

  • GOLD FUTURES

    2,388.70
    +5.70 (+0.24%)
     

  • RUSSELL 2000

    1,975.71
    -27.47 (-1.37%)
     

  • 10-Yr Bond

    4.6280
    0.0000 (0.00%)
     

  • NASDAQ futures

    17,856.50
    -19.75 (-0.11%)
     

  • VOLATILITY

    19.23
    0.00 (0.00%)
     

  • FTSE

    7,861.68
    -103.85 (-1.30%)
     

  • NIKKEI 225

    38,471.20
    -761.60 (-1.94%)
     

  • CAD/EUR

    0.6824
    0.0000 (0.00%)
     
MARKETS LIVE BLOG:

STOCKS SLIP WITH MIDEAST TENSIONS, EARNINGS IN PLAY

Oil pares losses as traders anticipate Israel's response to Iranian attack

Is VALE S.A. (VALE) Stock Undervalued Right Now?

Zacks Equity Research
·2 min read

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is VALE S.A. (VALE). VALE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.69, while its industry has an average P/E of 9.62. Over the last 12 months, VALE's Forward P/E has been as high as 10.46 and as low as 4.28, with a median of 7.43.

ADVERTISEMENT

VALE is also sporting a PEG ratio of 1.13. 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 currently sports an average PEG of 1.66. Over the last 12 months, VALE's PEG has been as high as 2.11 and as low as 1.13, with a median of 1.65.

These are just a handful of the figures considered in VALE S.A.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VALE is an impressive value stock right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
VALE S.A. (VALE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research