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Why Vale (VALE) Could Be Positioned for a Surge

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Vale S.A. (VALE - Free Report) is a provider of mining service that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on VALE’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Vale could be a solid choice for investors.

Current Quarter Estimates for VALE

In the past 30 days, one estimate has gone higher for Vale while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from nine cents a share 30 days ago, to 16 cents today, a move of 77.7%.

Current Year Estimates for VALE

Meanwhile, Vale’s current year figures are also looking quite promising, with one estimate moving higher in the past month, with no lower estimate. The consensus estimate trend has also seen a boost for this time frame, increasing from 80 cents per share 30 days ago to 84 cents per share today, an increase of 5.0%.

VALE S.A. Price and Consensus

VALE S.A. Price and Consensus | VALE S.A. Quote

Bottom Line

The stock has also started to move higher lately, adding 9.6% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.

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