In This Article:
The latest trading session saw VALE S.A. (VALE) ending at $9.27, denoting a -1.38% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.49%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 1.22%.
The company's stock has dropped by 1.78% in the past month, exceeding the Basic Materials sector's loss of 2.81% and the S&P 500's loss of 8.15%.
Market participants will be closely following the financial results of VALE S.A. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.40, reflecting a 2.56% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.81 billion, up 4.09% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.85 per share and revenue of $39.71 billion. These totals would mark changes of +1.65% and +4.34%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for VALE S.A. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% downward. At present, VALE S.A. boasts a Zacks Rank of #3 (Hold).
Investors should also note VALE S.A.'s current valuation metrics, including its Forward P/E ratio of 5.09. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 5.09.
Also, we should mention that VALE has a PEG ratio of 0.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining - Iron industry had an average PEG ratio of 0.29 as trading concluded yesterday.
The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.