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VALE S.A. (VALE) Gains But Lags Market: What You Should Know

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VALE S.A. (VALE - Free Report) closed the most recent trading day at $22.23, moving +0.36% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.47%.

Heading into today, shares of the company had gained 2.21% over the past month, outpacing the Basic Materials sector's loss of 2.29% and the S&P 500's loss of 0.12% in that time.

Wall Street will be looking for positivity from VALE as it approaches its next earnings report date. In that report, analysts expect VALE to post earnings of $1.34 per share. This would mark year-over-year growth of 509.09%. Meanwhile, our latest consensus estimate is calling for revenue of $15.14 billion, up 101.42% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.02 per share and revenue of $58.77 billion, which would represent changes of +137.91% and +46.87%, respectively, from the prior year.

Any recent changes to analyst estimates for VALE should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 9.55% higher. VALE is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note VALE's current valuation metrics, including its Forward P/E ratio of 4.41. Its industry sports an average Forward P/E of 5.05, so we one might conclude that VALE is trading at a discount comparatively.

Investors should also note that VALE has a PEG ratio of 0.14 right now. 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. Mining - Iron stocks are, on average, holding a PEG ratio of 0.14 based on yesterday's closing prices.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 130, which puts it in the bottom 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.


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