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VALE S.A. (VALE) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, VALE S.A. (VALE - Free Report) closed at $12.35, marking a -0.24% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.16%.

Heading into today, shares of the company had lost 7.2% over the past month, lagging the Basic Materials sector's loss of 1.95% and the S&P 500's gain of 2.07% 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 $0.53 per share, which would represent year-over-year growth of 43.24%. Our most recent consensus estimate is calling for quarterly revenue of $9.61 billion, up 11.7% from the year-ago period.

VALE's full-year Zacks Consensus Estimates are calling for earnings of $2.23 per share and revenue of $40.63 billion. These results would represent year-over-year changes of +20.54% and +11.09%, respectively.

Investors might also notice recent changes to analyst estimates for VALE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about 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.

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. Within the past 30 days, our consensus EPS projection has moved 11.71% higher. VALE currently has a Zacks Rank of #2 (Buy).

Digging into valuation, VALE currently has a Forward P/E ratio of 5.55. This valuation marks a discount compared to its industry's average Forward P/E of 6.48.

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 includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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