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VALE S.A. (VALE) Exceeds Market Returns: Some Facts to Consider

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The latest trading session saw VALE S.A. (VALE - Free Report) ending at $10.98, denoting a +1.76% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.

Prior to today's trading, shares of the company had gained 1.98% over the past month. This has lagged the Basic Materials sector's gain of 6.97% and the S&P 500's gain of 3.48% in that time.

Market participants will be closely following the financial results of VALE S.A. in its upcoming release. The company plans to announce its earnings on October 25, 2024. The company is forecasted to report an EPS of $0.56, showcasing a 15.15% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.09 billion, down 4.98% from the year-ago period.

VALE's full-year Zacks Consensus Estimates are calling for earnings of $2.06 per share and revenue of $39.34 billion. These results would represent year-over-year changes of +12.57% and -5.85%, respectively.

Investors might also notice recent changes to analyst estimates for VALE S.A. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate has moved 2.46% lower within the past month. VALE S.A. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 5.24. This expresses no noticeable deviation compared to the average Forward P/E of 5.24 of its industry.

Also, we should mention that VALE has a PEG ratio of 0.3. 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. VALE's industry had an average PEG ratio of 0.3 as of yesterday's close.

The Mining - Iron industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 109, finds itself in the top 44% echelons 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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