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VALE S.A. (VALE) Stock Sinks As Market Gains: What You Should Know
VALE S.A. (VALE - Free Report) closed at $18.45 in the latest trading session, marking a -1.23% move from the prior day. This change lagged the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 9.7%.
Coming into today, shares of the company had gained 14.25% in the past month. In that same time, the Basic Materials sector gained 11.42%, while the S&P 500 gained 6.27%.
Investors will be hoping for strength from VALE S.A. as it approaches its next earnings release. The company is expected to report EPS of $0.64, down 54.93% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.42 billion, down 12.85% from the year-ago period.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 9.12% higher. VALE S.A. is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 6.64. This valuation marks a discount compared to its industry's average Forward P/E of 8.94.
Investors should also note that VALE has a PEG ratio of 1.79 right now. 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 1.79 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 2, putting it in the top 1% 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.
To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.