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VALE S.A. (VALE) Outpaces Stock Market Gains: What You Should Know

VALE S.A. (VALE) closed the most recent trading day at $15.77, moving +0.57% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 2.51%.

Prior to today's trading, shares of the company had lost 1.13% over the past month. This has lagged the Basic Materials sector's gain of 7.78% and the S&P 500's gain of 6.17% in that time.

Investors will be hoping for strength from VALE S.A. as it approaches its next earnings release. In that report, analysts expect VALE S.A. to post earnings of $0.60 per share. This would mark a year-over-year decline of 23.08%. Meanwhile, our latest consensus estimate is calling for revenue of $10.09 billion, down 6.64% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.03 per share and revenue of $43.42 billion, which would represent changes of -16.07% and -0.95%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for VALE S.A.These recent revisions tend to reflect the evolving nature of short-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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.76% higher. VALE S.A. is currently a Zacks Rank #3 (Hold).

In terms of valuation, VALE S.A. is currently trading at a Forward P/E ratio of 5.18. Its industry sports an average Forward P/E of 7.11, so we one might conclude that VALE S.A. is trading at a discount comparatively.

The Mining - Iron industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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Zacks Investment Research