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VALE S.A. (VALE) closed at $9.63 in the latest trading session, marking a -1.33% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.59% for the day. Elsewhere, the Dow saw a downswing of 0.45%, while the tech-heavy Nasdaq depreciated by 2.78%.
The company's shares have seen an increase of 7.61% over the last month, surpassing the Basic Materials sector's gain of 0.77% and the S&P 500's loss of 2.23%.
Analysts and investors alike will be keeping a close eye on the performance of VALE S.A. in its upcoming earnings disclosure. The company is expected to report EPS of $0.43, up 10.26% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $8.81 billion, reflecting a 4.09% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.83 per share and a revenue of $39.69 billion, indicating changes of +0.55% and +4.29%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for VALE S.A. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.98% fall in the Zacks Consensus EPS estimate. VALE S.A. is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, VALE S.A. is currently exchanging hands at a Forward P/E ratio of 5.34. This represents no noticeable deviation compared to its industry's average Forward P/E of 5.34.
One should further note that VALE currently holds a PEG ratio of 0.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Iron industry currently had an average PEG ratio of 0.3 as of yesterday's close.
The Mining - Iron industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% of all 250+ industries.