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VALE S.A. (VALE) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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The latest trading session saw VALE S.A. (VALE - Free Report) ending at $14.06, denoting a -1.75% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.56%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.59%.

Coming into today, shares of the company had lost 6.84% in the past month. In that same time, the Basic Materials sector lost 4.65%, while the S&P 500 gained 1.2%.

The investment community will be closely monitoring the performance of VALE S.A. in its forthcoming earnings report. In that report, analysts expect VALE S.A. to post earnings of $0.88 per share. This would mark year-over-year growth of 7.32%. Alongside, our most recent consensus estimate is anticipating revenue of $12.5 billion, indicating a 4.65% upward movement from the same quarter last year.

Investors should also pay attention to any latest changes in analyst estimates for VALE S.A. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.49% lower. VALE S.A. is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, VALE S.A. is currently exchanging hands at a Forward P/E ratio of 5.18. This signifies a discount in comparison to the average Forward P/E of 8.84 for its industry.

The Mining - Iron industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 105, placing it within the top 42% of over 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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