In the latest trading session, VALE S.A. (VALE - Free Report) closed at $11.22, marking a -1.49% move from the previous day. This move lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.21%, and the Nasdaq, a tech-heavy index, added 0.13%.
Prior to today's trading, shares of the company had lost 20.9% over the past month. This has lagged the Basic Materials sector's gain of 2.9% and the S&P 500's gain of 5.36% in that time.
Wall Street will be looking for positivity from VALE as it approaches its next earnings report date. In that report, analysts expect VALE to post earnings of $0.62 per share. This would mark year-over-year growth of 72.22%. Meanwhile, our latest consensus estimate is calling for revenue of $10.67 billion, up 16.43% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for VALE. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection has moved 5.52% higher. VALE is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that VALE has a Forward P/E ratio of 6.04 right now. This valuation marks a discount compared to its industry's average Forward P/E of 7.01.
The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.