Back to top

Image: Bigstock

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

Read MoreHide Full Article

VALE S.A. (VALE - Free Report) closed at $22.45 in the latest trading session, marking a +0.22% move from the prior day. This move lagged the S&P 500's daily gain of 0.88%.

Heading into today, shares of the company had gained 2.52% over the past month, lagging the Basic Materials sector's gain of 4.83% and outpacing the S&P 500's gain of 0.15% in that time.

Wall Street will be looking for positivity from VALE as it approaches its next earnings report date. The company is expected to report EPS of $1.34, up 509.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.14 billion, up 101.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.02 per share and revenue of $58.77 billion, which would represent changes of +137.91% and +46.87%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for VALE. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.55% higher. VALE currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that VALE has a Forward P/E ratio of 4.46 right now. This valuation marks a discount compared to its industry's average Forward P/E of 5.13.

Also, we should mention that VALE has a PEG ratio of 0.14. 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. Mining - Iron stocks are, on average, holding a PEG ratio of 0.14 based on yesterday's closing prices.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 8% 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.


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