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VALE S.A. (VALE) Dips More Than Broader Markets: What You Should Know
In the latest trading session, VALE S.A. (VALE - Free Report) closed at $12.55, marking a -0.32% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the company had lost 4.98% over the past month. This has was narrower than the Basic Materials sector's loss of 14.2% and the S&P 500's loss of 9.7% in that time.
VALE S.A. will be looking to display strength as it nears its next earnings release. On that day, VALE S.A. is projected to report earnings of $0.79 per share, which would represent a year-over-year decline of 31.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.44 billion, down 1.88% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $46.61 billion. These totals would mark changes of -42.41% and -15.41%, respectively, from last year.
Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 3.05% lower within the past month. VALE S.A. is currently a Zacks Rank #3 (Hold).
Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 4.05. This represents a discount compared to its industry's average Forward P/E of 5.48.
Also, we should mention that VALE has a PEG ratio of 1.09. 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 1.09 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 96, which puts it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.