In the latest trading session, VALE SA (VALE) closed at $11.32, up +1.8% from the previous trading day’s closing price. The stock outperformed the S&P 500, which gained 0.23% on the day, while the Dow fell 0.17% and the tech-heavy Nasdaq gained 0.34%.
Shares of the company have lost 11.47% over the past month, lagging the Basic Materials sector’s loss of 2.98% and the S&P 500’s gain of 3.96%.
Analysts and investors will be closely watching VALE SA’s performance in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.52, representing an increase of 160% over the same period last year. At the same time, our latest consensus estimates are calling for revenue of $10.29 billion, representing an increase of 6.36% year over year.
Looking at the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $2.18 per share and revenue of $42.21 billion, which would represent changes of +19.13% and +1.02%, respectively, from the prior year.
Investors may also notice recent changes to analyst estimates for VALE SA. These latest adjustments often reflect shifting short-term business patterns. As a result, positive changes in estimates suggest that analysts have a favorable outlook for the company’s business health and profitability.
Our research shows that these estimate changes are directly correlated with future stock price movements, and to take advantage of this, we have created the Zacks Rank, a proprietary model which synthesizes these estimate changes and provides a functioning 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 1.14% 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 5.11, which does not represent a notable deviation compared to its industry’s average Forward P/E of 5.11.
It is also worth noting that VALE currently has a PEG ratio of 4.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account a company’s expected earnings growth rate. VALE’s industry had an average PEG ratio of 4.92 as of yesterday’s close.
The Mining – Steel industry belongs to the Basic Materials sector. Its current Zacks Industry Rank of 93 puts this industry in the top 37% 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 monitor all of these indicators and more impacting stocks in the coming trading sessions, remember to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Download today: 7 Best Stocks for the Next 30 Days Click to get this free report.
VALE SA (VALE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
