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VALE S.A. (VALE) Stock Moves -1.22%: What You Should Know

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VALE S.A. (VALE - Free Report) closed at $16.15 in the latest trading session, marking a -1.22% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.44%. Elsewhere, the Dow lost 1.45%, while the tech-heavy Nasdaq lost 0.41%.

Coming into today, shares of the company had gained 19.69% in the past month. In that same time, the Basic Materials sector lost 2.15%, while the S&P 500 lost 3.72%.

Wall Street will be looking for positivity from VALE S.A. as it approaches its next earnings report date. In that report, analysts expect VALE S.A. to post earnings of $0.74 per share. This would mark a year-over-year decline of 32.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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

Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 7.79. For comparison, its industry has an average Forward P/E of 9.46, which means VALE S.A. is trading at a discount to the group.

Meanwhile, VALE's PEG ratio is currently 0.75. 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 was holding an average PEG ratio of 0.75 at yesterday's closing price.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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