Back to top

Image: Bigstock

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

Read MoreHide Full Article

VALE S.A. (VALE - Free Report) closed the most recent trading day at $13.45, moving -1.39% from the previous trading session. This change lagged the S&P 500's 0.67% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 0.22%.

Prior to today's trading, shares of the company had gained 1.79% over the past month. This has outpaced the Basic Materials sector's loss of 1.68% and the S&P 500's loss of 3.76% in that time.

VALE S.A. will be looking to display strength as it nears its next earnings release. In that report, analysts expect VALE S.A. to post earnings of $0.57 per share. This would mark a year-over-year decline of 50.86%. Our most recent consensus estimate is calling for quarterly revenue of $10.52 billion, down 17.04% from the year-ago period.

VALE's full-year Zacks Consensus Estimates are calling for earnings of $2.77 per share and revenue of $43.57 billion. These results would represent year-over-year changes of -48.7% and -20.94%, respectively.

Investors might also notice recent changes to analyst estimates for VALE S.A.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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 10.93% lower. VALE S.A. is currently a Zacks Rank #3 (Hold).

Investors should also note VALE S.A.'s current valuation metrics, including its Forward P/E ratio of 4.92. This represents a discount compared to its industry's average Forward P/E of 6.86.

Investors should also note that VALE has a PEG ratio of 1.33 right now. 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 1.33 at yesterday's closing price.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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