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

VALE S.A. (VALE) closed the most recent trading day at $15.10, moving -0.53% from the previous trading session. This change lagged the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.91%.

Coming into today, shares of the company had lost 9.21% in the past month. In that same time, the Basic Materials sector lost 3.1%, while the S&P 500 gained 1.24%.

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 $0.67 per share. This would mark a year-over-year decline of 14.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.29 billion, down 4.85% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.94 per share and revenue of $43.19 billion, which would represent changes of -18.56% and -1.48%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for VALE S.A.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.62% higher within the past month. VALE S.A. is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note VALE S.A.'s current valuation metrics, including its Forward P/E ratio of 5.16. For comparison, its industry has an average Forward P/E of 7.24, 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 has a Zacks Industry Rank of 104, which puts it in the top 42% 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