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VALE S.A. (VALE) closed the latest trading day at $9.74, indicating a -0.71% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.24% for the day. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.08%.
Prior to today's trading, shares of the company had gained 9.24% over the past month. This has outpaced the Basic Materials sector's gain of 4.69% and the S&P 500's gain of 2.37% in that time.
The upcoming earnings release of VALE S.A. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.53, marking a 5.36% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.08 billion, down 22.81% from the year-ago period.
Investors should also note any recent changes to analyst estimates for VALE S.A. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.33% rise in the Zacks Consensus EPS estimate. VALE S.A. is currently a Zacks Rank #3 (Hold).
Looking at valuation, VALE S.A. is presently trading at a Forward P/E ratio of 5.3. Its industry sports an average Forward P/E of 5.27, so one might conclude that VALE S.A. is trading at a premium comparatively.
One should further note that VALE currently holds a PEG ratio of 0.3. 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 0.3 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 90, positioning it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.