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

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In the latest trading session, VALE S.A. (VALE - Free Report) closed at $17.01, marking a -1.22% move from the previous day. This change lagged the S&P 500's daily gain of 1.42%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 3.69%.

Heading into today, shares of the company had lost 2.44% over the past month, lagging the Basic Materials sector's gain of 2.56% and the S&P 500's loss of 2.26% in that time.

Investors will be hoping for strength from VALE as it approaches its next earnings release. In that report, analysts expect VALE to post earnings of $1.11 per share. This would mark year-over-year growth of 1485.71%. Meanwhile, our latest consensus estimate is calling for revenue of $13.84 billion, up 98.58% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.13 per share and revenue of $52.62 billion, which would represent changes of +95.73% and +31.48%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for VALE. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 26.42% higher within the past month. VALE is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, VALE currently has a Forward P/E ratio of 4.17. This represents a discount compared to its industry's average Forward P/E of 4.96.

Investors should also note that VALE has a PEG ratio of 0.17 right now. 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. Mining - Iron stocks are, on average, holding a PEG ratio of 0.17 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 1, which puts it in the top 1% 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.

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


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