VALE S.A. (VALE) Stock Declines While Market Improves: Some Information for Investors

In the latest trading session, VALE S.A. (VALE) closed at $9.86, marking a -1.3% move from the previous day. This change lagged the S&P 500's 0.61% gain on the day. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.95%.

Coming into today, shares of the company had gained 3.42% in the past month. In that same time, the Basic Materials sector gained 1.51%, while the S&P 500 gained 3.85%.

Investors will be eagerly watching for the performance of VALE S.A. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.39, showcasing a 9.3% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $9.53 billion, indicating a 3.96% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $38.71 billion. These totals would mark changes of -2.75% and +1.71%, respectively, from last year.

Investors might also notice recent changes 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 business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.22% downward. VALE S.A. is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that VALE S.A. has a Forward P/E ratio of 5.63 right now. For comparison, its industry has an average Forward P/E of 5.63, which means VALE S.A. is trading at no noticeable deviation to the group.

It is also worth noting that VALE currently has a PEG ratio of 0.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Mining - Iron industry was having an average PEG ratio of 0.32.

The Mining - Iron industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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This article originally published on Zacks Investment Research (zacks.com).

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