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

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VALE S.A. (VALE - Free Report) closed at $17.52 in the latest trading session, marking a -0.79% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 11.55%.

Prior to today's trading, shares of the company had gained 4.25% over the past month. This has outpaced the Basic Materials sector's loss of 2.28% and the S&P 500's loss of 1.03% in that time.

Wall Street will be looking for positivity from VALE S.A. as it approaches its next earnings report date. The company is expected to report EPS of $0.65, down 54.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.42 billion, down 12.85% 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.

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 0.59% higher. VALE S.A. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 6.85. This represents a discount compared to its industry's average Forward P/E of 9.43.

Also, we should mention that VALE has a PEG ratio of 1.85. 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 1.85 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 89, which puts it in the top 36% 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.

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


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