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VALE S.A. (VALE) Stock Drops Despite Market Gains: Important Facts to Note

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The most recent trading session ended with VALE S.A. (VALE - Free Report) standing at $12.76, reflecting a -0.93% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 1.35%.

Shares of the company have depreciated by 7.2% over the course of the past month, outperforming the Basic Materials sector's loss of 7.36% and lagging the S&P 500's loss of 6.19%.

Analysts and investors alike will be keeping a close eye on the performance of VALE S.A. in its upcoming earnings disclosure. In that report, analysts expect VALE S.A. to post earnings of $0.71 per share. This would mark a year-over-year decline of 27.55%. Meanwhile, our latest consensus estimate is calling for revenue of $11.23 billion, up 13.09% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.05 per share and a revenue of $41.01 billion, representing changes of -43.21% and -6.45%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for VALE S.A. Recent revisions tend to reflect the latest 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 6.63% rise in the Zacks Consensus EPS estimate. At present, VALE S.A. boasts a Zacks Rank of #3 (Hold).

Investors should also note VALE S.A.'s current valuation metrics, including its Forward P/E ratio of 6.28. This represents a discount compared to its industry's average Forward P/E of 7.34.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


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