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

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VALE S.A. (VALE - Free Report) closed at $22.48 in the latest trading session, marking a +1.67% move from the prior day. This change outpaced the S&P 500's 0.75% gain on the day.

Coming into today, shares of the company had lost 1.29% in the past month. In that same time, the Basic Materials sector lost 6.8%, while the S&P 500 gained 2.91%.

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 $1.45 per share. This would mark year-over-year growth of 559.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.95 billion, up 125.47% from the year-ago period.

VALE's full-year Zacks Consensus Estimates are calling for earnings of $5.36 per share and revenue of $66.81 billion. These results would represent year-over-year changes of +154.03% and +66.94%, respectively.

Investors should also note any recent changes to analyst estimates for VALE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 6.83% higher within the past month. VALE is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, VALE is holding a Forward P/E ratio of 4.13. For comparison, its industry has an average Forward P/E of 4.95, which means VALE is trading at a discount to the group.

It is also worth noting that VALE currently has a PEG ratio of 0.13. 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. VALE's industry had an average PEG ratio of 0.13 as of yesterday's close.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 2, putting it in the top 1% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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