In the latest trading session, VALE S.A. (VALE - Free Report) closed at $13.57, marking no change from the previous day. This move lagged the S&P 500's daily gain of 0.35%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 0.7%.
Heading into today, shares of the company had gained 3.98% over the past month, lagging the Basic Materials sector's gain of 4.61% and the S&P 500's gain of 5.14% in that time.
Investors will be hoping for strength from VALE as it approaches its next earnings release. On that day, VALE is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 40.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.77 billion, up 13.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.21 per share and revenue of $40.28 billion, which would represent changes of +19.46% and +10.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for VALE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. VALE is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, VALE currently has a Forward P/E ratio of 6.15. This represents a discount compared to its industry's average Forward P/E of 7.26.
The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 1, which puts 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.
To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.