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VALE S.A. (VALE) Beats Stock Market Upswing: What Investors Need to Know

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VALE S.A. (VALE - Free Report) closed the most recent trading day at $11.29, moving +2.54% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.37%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.71%.

Shares of the company have appreciated by 5.87% over the course of the past month, outperforming the Basic Materials sector's gain of 5.71%, and the S&P 500's gain of 4.26%.

The upcoming earnings release of VALE S.A. will be of great interest to investors. The company is forecasted to report an EPS of $0.44, showcasing a 21.43% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $10.28 billion, up 7.63% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.69 per share and a revenue of $37.79 billion, demonstrating changes of -7.14% and -0.71%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for VALE S.A. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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 remained stagnant within the past month. VALE S.A. presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that VALE S.A. has a Forward P/E ratio of 6.51 right now. This signifies no noticeable deviation in comparison to the average Forward P/E of 6.51 for its industry.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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