VALE S.A. (VALE) ended the recent trading session at $8.51, demonstrating a +0.12% swing from the preceding day's closing price. The stock lagged the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.86%, and the technology-centric Nasdaq decreased by 0.38%.
Coming into today, shares of the company had lost 8.21% in the past month. In that same time, the Basic Materials sector lost 10.8%, while the S&P 500 lost 2.2%.
The upcoming earnings release of VALE S.A. will be of great interest to investors. The company is forecasted to report an EPS of $0.64, showcasing a 14.29% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $10.74 billion, down 17.73% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for VALE S.A. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.92% downward. Right now, VALE S.A. possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, VALE S.A. is currently exchanging hands at a Forward P/E ratio of 4.53. This represents no noticeable deviation compared to its industry's average Forward P/E of 4.53.
Also, we should mention that VALE has a PEG ratio of 0.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Mining - Iron stocks are, on average, holding a PEG ratio of 0.26 based on yesterday's closing prices.
The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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