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VALE S.A. (VALE) closed the latest trading day at $8.56, indicating a -0.7% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq depreciated by 1.89%.
The company's shares have seen a decrease of 12.49% over the last month, not keeping up with the Basic Materials sector's loss of 10.34% and the S&P 500's loss of 1.7%.
Investors will be eagerly watching for the performance of VALE S.A. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.64, showcasing a 14.29% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $10.74 billion, indicating a 17.73% decline compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for VALE S.A. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained steady. Right now, VALE S.A. possesses a Zacks Rank of #3 (Hold).
In the context of valuation, VALE S.A. is at present trading with a Forward P/E ratio of 4.32. This represents no noticeable deviation compared to its industry's average Forward P/E of 4.32.
Investors should also note that VALE has a PEG ratio of 0.25 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Mining - Iron industry had an average PEG ratio of 0.25.
The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank is ordered 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.