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Here's Why VALE S.A. (VALE) Gained But Lagged the Market Today

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In the latest trading session, VALE S.A. (VALE - Free Report) closed at $13.41, marking a +0.3% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.9%.

Shares of the company witnessed a loss of 2.34% over the previous month, trailing the performance of the Basic Materials sector with its loss of 0.45% and the S&P 500's gain of 3.85%.

The upcoming earnings release of VALE S.A. will be of great interest to investors. On that day, VALE S.A. is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 58.54%. Simultaneously, our latest consensus estimate expects the revenue to be $9.91 billion, showing a 17.46% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.74 per share and revenue of $44.11 billion. These totals would mark changes of +49.73% and +5.57%, respectively, from last year.

Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.73% rise in the Zacks Consensus EPS estimate. As of now, VALE S.A. holds a Zacks Rank of #3 (Hold).

From a valuation perspective, VALE S.A. is currently exchanging hands at a Forward P/E ratio of 4.88. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 4.88.

The Mining - Iron industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 98, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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