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VALE S.A. (VALE) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, VALE S.A. (VALE - Free Report) closed at $16.35, marking a +1.05% move from the previous day. This move outpaced the S&P 500's daily gain of 0.94%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, lost 0.55%.

Prior to today's trading, shares of the company had gained 19.41% over the past month. This has outpaced the Basic Materials sector's loss of 2.45% and the S&P 500's loss of 4.63% in that time.

Investors will be hoping for strength from VALE S.A. as it approaches its next earnings release. The company is expected to report EPS of $0.74, down 32.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.5 billion, down 22.13% from the year-ago period.

Investors might also notice recent changes to analyst estimates for VALE S.A.These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.36% lower within the past month. VALE S.A. currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, VALE S.A. is holding a Forward P/E ratio of 7.7. This valuation marks a discount compared to its industry's average Forward P/E of 9.28.

Meanwhile, VALE's PEG ratio is currently 0.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Mining - Iron industry currently had an average PEG ratio of 0.74 as of yesterday's close.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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