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VALE S.A. (VALE) Exceeds Market Returns: Some Facts to Consider

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VALE S.A. (VALE - Free Report) closed the most recent trading day at $14.17, moving +1% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq increased by 0.36%.

Prior to today's trading, shares of the company had lost 11.93% over the past month. This has lagged the Basic Materials sector's loss of 6.84% and the S&P 500's gain of 2.4% in that time.

Analysts and investors alike will be keeping a close eye on the performance of VALE S.A. in its upcoming earnings disclosure. The company's earnings report is set to go public on February 22, 2024. On that day, VALE S.A. is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 7.32%. Meanwhile, our latest consensus estimate is calling for revenue of $12.5 billion, up 4.65% from the prior-year quarter.

Investors should also take note of any recent adjustments to analyst estimates for VALE S.A. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.49% downward. Currently, VALE S.A. is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, VALE S.A. is currently being traded at a Forward P/E ratio of 5.08. For comparison, its industry has an average Forward P/E of 9.11, which means VALE S.A. is trading at a discount to the group.

The Mining - Iron industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 119, finds itself in the top 48% echelons 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.

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


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