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VALE S.A. (VALE) closed at $9.98 in the latest trading session, marking a -0.6% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. On the other hand, the Dow registered a gain of 1.01%, and the technology-centric Nasdaq decreased by 0.14%.
Prior to today's trading, shares of the company had gained 6.47% over the past month. This has outpaced the Basic Materials sector's gain of 0.34% and the S&P 500's loss of 6.22% in that time.
Market participants will be closely following the financial results of VALE S.A. in its upcoming release. In that report, analysts expect VALE S.A. to post earnings of $0.43 per share. This would mark year-over-year growth of 10.26%. Simultaneously, our latest consensus estimate expects the revenue to be $8.81 billion, showing a 4.09% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.87 per share and a revenue of $39.97 billion, representing changes of +2.75% and +5.02%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for VALE S.A. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.08% higher. Currently, VALE S.A. is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, VALE S.A. is presently being traded at a Forward P/E ratio of 5.38. This signifies no noticeable deviation in comparison to the average Forward P/E of 5.38 for its industry.
One should further note that VALE currently holds a PEG ratio of 0.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VALE's industry had an average PEG ratio of 0.31 as of yesterday's close.
The Mining - Iron industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 31% echelons of all 250+ industries.