Back to top

Image: Bigstock

VALE S.A. (VALE) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, VALE S.A. (VALE - Free Report) closed at $17.19, marking a -0.29% move from the previous day. This change lagged the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq added 0.09%.

VALE will be looking to display strength as it nears its next earnings release. In that report, analysts expect VALE to post earnings of $1.07 per share. This would mark year-over-year growth of 1428.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.84 billion, up 98.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.13 per share and revenue of $52.62 billion. These totals would mark changes of +95.73% and +31.48%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for VALE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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, the Zacks Consensus EPS estimate has moved 21.54% higher. VALE is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note VALE's current valuation metrics, including its Forward P/E ratio of 4.26. For comparison, its industry has an average Forward P/E of 4.72, which means VALE is trading at a discount to the group.

We can also see that VALE currently has a PEG ratio of 0.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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 6, which puts it in the top 3% 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.

To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


VALE S.A. (VALE) - free report >>

Published in