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

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VALE S.A. (VALE - Free Report) closed at $14.54 in the latest trading session, marking a +0.35% move from the prior day. This move outpaced the S&P 500's daily loss of 0.28%.

Prior to today's trading, shares of the company had lost 25.46% over the past month. This has lagged the Basic Materials sector's loss of 6% and the S&P 500's loss of 0.56% in that time.

Investors will be hoping for strength from VALE as it approaches its next earnings release. The company is expected to report EPS of $1.52, up 80.95% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.17 billion, up 50.27% from the prior-year quarter.

VALE's full-year Zacks Consensus Estimates are calling for earnings of $4.57 per share and revenue of $62.3 billion. These results would represent year-over-year changes of +116.59% and +55.69%, respectively.

Any recent changes to analyst estimates for VALE should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 22.93% lower. VALE is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, VALE currently has a Forward P/E ratio of 3.17. This represents a discount compared to its industry's average Forward P/E of 4.42.

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. The Mining - Iron was holding an average PEG ratio of 0.17 at yesterday's closing price.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 252, which puts it in the bottom 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.

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