Back to top

Image: Bigstock

VALE S.A. (VALE) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, VALE S.A. (VALE - Free Report) closed at $14.65, marking a -1.08% move from the previous day. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Prior to today's trading, shares of the company had gained 9.54% over the past month. This has outpaced the Basic Materials sector's gain of 3.29% and the S&P 500's loss of 0.13% in that time.

VALE S.A. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.68, down 37.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.5 billion, down 22.13% from the year-ago period.

Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. VALE S.A. currently has a Zacks Rank of #3 (Hold).

Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 7.03. This valuation marks a discount compared to its industry's average Forward P/E of 9.22.

Investors should also note that VALE has a PEG ratio of 0.35 right now. 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 0.35 as of yesterday's close.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 247, putting it in the bottom 4% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


VALE S.A. (VALE) - free report >>

Published in