VALE SA (VALE) closed the most recent trading day at $11.16, up +0.18% from the previous trading session. The stock outperformed the S&P 500, which was up 0.09% on the day, while the Dow was up 0.09% and the tech-heavy Nasdaq was up 0.3%.
Shares of the company had lost 8.16% over the past month, lagging the Basic Materials sector’s loss of 4.67% and the S&P 500’s gain of 3.38%.
VALE SA’s upcoming earnings release will be of great interest to investors, as the company is expected to report EPS of $0.49, representing year-over-year growth of 145%, while our current consensus estimates are calling for revenue of $9.99 billion, representing year-over-year growth of 3.26%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.17 per share and revenue of $41.5 billion, which would represent changes of +18.58% and -0.69%, respectively, from the prior year.
Investors should also note any recent adjustments to analyst estimates for VALE SA. These recent revisions tend to reflect changing short-term business trends, therefore, positive estimate revisions mean the analysts are more confident in the company’s operating performance and earnings potential.
Research shows that these estimate revisions are directly correlated with near-term share price momentum, so to take advantage of 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 returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. VALE SA currently has a Zacks Rank #3 (Hold).
From a valuation perspective, VALE SA is currently trading with a Forward P/E ratio of 5.12, which doesn’t represent a notable deviation compared to its industry’s average Forward P/E of 5.12.
It’s also worth noting that VALE currently has a PEG ratio of 4.93. This metric is used similarly to the well-known P/E ratio, but the PEG ratio also takes into account a stock’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Mining – Steel industry was 4.93.
The Mining – Steel industry belongs to the Basic Materials sector. This industry currently has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.
The strength of each industry group is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To track VALE in the upcoming trading sessions, be sure to utilize Zacks.com.
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