Back to top

Image: Bigstock

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

Read MoreHide Full Article

VALE S.A. (VALE - Free Report) closed at $12.34 in the latest trading session, marking a +0.57% move from the prior day. The stock lagged the S&P 500's daily gain of 0.66%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 0.08%.

Coming into today, shares of the company had lost 10.83% in the past month. In that same time, the Basic Materials sector lost 1.46%, while the S&P 500 lost 3.79%.

Investors will be hoping for strength from VALE S.A. as it approaches its next earnings release. In that report, analysts expect VALE S.A. to post earnings of $0.95 per share. This would mark a year-over-year decline of 18.1%. Meanwhile, our latest consensus estimate is calling for revenue of $12.83 billion, up 1.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.21 per share and revenue of $48.11 billion, which would represent changes of -40.56% and -12.69%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.25% lower. VALE S.A. is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that VALE S.A. has a Forward P/E ratio of 3.82 right now. This represents a discount compared to its industry's average Forward P/E of 5.88.

Also, we should mention that VALE has a PEG ratio of 1.03. 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. VALE's industry had an average PEG ratio of 1.03 as of yesterday's close.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 14% 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.

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