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VALE S.A. (VALE) Stock Moves -1.35%: What You Should Know

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In the latest trading session, VALE S.A. (VALE - Free Report) closed at $16.86, marking a -1.35% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.91%. At the same time, the Dow lost 2.73%, and the tech-heavy Nasdaq lost 0.25%.

Heading into today, shares of the company had gained 12.81% over the past month, outpacing the Basic Materials sector's gain of 4.39% and the S&P 500's gain of 0.84% in that time.

Investors will be hoping for strength from VALE S.A. as it approaches its next earnings release, which is expected to be July 28, 2022. The company is expected to report EPS of $1.28, down 19.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.24 billion, down 14.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.50 per share and revenue of $53.96 billion, which would represent changes of -16.67% and -2.08%, respectively, from the prior year.

Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 1.93% higher. VALE S.A. is currently a Zacks Rank #3 (Hold).

In terms of valuation, VALE S.A. is currently trading at a Forward P/E ratio of 3.8. Its industry sports an average Forward P/E of 5.78, so we one might conclude that VALE S.A. is trading at a discount comparatively.

Investors should also note that VALE has a PEG ratio of 1.02 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. The Mining - Iron was holding an average PEG ratio of 1.02 at yesterday's closing price.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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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