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

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In the latest trading session, VALE S.A. (VALE - Free Report) closed at $16.95, marking a -0.06% move from the previous day. This change lagged the S&P 500's 1.29% gain on the day. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq lost 4.94%.

Prior to today's trading, shares of the company had lost 3.2% over the past month. This has lagged the Basic Materials sector's gain of 3.27% and the S&P 500's gain of 5.64% in that time.

Wall Street will be looking for positivity from VALE S.A. as it approaches its next earnings report date. In that report, analysts expect VALE S.A. to post earnings of $0.63 per share. This would mark a year-over-year decline of 55.63%. Our most recent consensus estimate is calling for quarterly revenue of $11.66 billion, down 11.03% from the year-ago period.

Investors might also notice recent changes to analyst estimates for VALE S.A.These revisions help to show the ever-changing nature of 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. 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 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 10.96% higher. VALE S.A. is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note VALE S.A.'s current valuation metrics, including its Forward P/E ratio of 5.93. Its industry sports an average Forward P/E of 7.98, so we one might conclude that VALE S.A. is trading at a discount comparatively.

It is also worth noting that VALE currently has a PEG ratio of 1.6. 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. The Mining - Iron industry currently had an average PEG ratio of 1.6 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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