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VALE S.A. (VALE) Dips More Than Broader Markets: What You Should Know

VALE S.A. (VALE) closed at $16.24 in the latest trading session, marking a -1.1% move from the prior day. This change lagged the S&P 500's 0.41% loss on the day. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 4.08%.

Prior to today's trading, shares of the company had gained 3.01% over the past month. This has lagged the Basic Materials sector's gain of 4.47% and the S&P 500's gain of 6.51% in that time.

Wall Street will be looking for positivity from VALE S.A. as it approaches its next earnings report date. On that day, VALE S.A. is projected to report earnings of $0.67 per share, which would represent a year-over-year decline of 14.1%. Meanwhile, our latest consensus estimate is calling for revenue of $10.29 billion, down 4.85% from the prior-year quarter.

VALE's full-year Zacks Consensus Estimates are calling for earnings of $3.03 per share and revenue of $41.9 billion. These results would represent year-over-year changes of -16.07% and -4.41%, respectively.

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Any recent changes to analyst estimates for VALE S.A. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 9.7% higher within the past month. VALE S.A. is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, VALE S.A. currently has a Forward P/E ratio of 5.43. This valuation marks a discount compared to its industry's average Forward P/E of 7.55.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.

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VALE S.A. (VALE) : Free Stock Analysis Report

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Zacks Investment Research