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VALE S.A. (VALE) Suffers a Larger Drop Than the General Market: Key Insights

VALE S.A. (VALE) closed the most recent trading day at $11.25, moving -0.35% from the previous trading session. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.18%.

Coming into today, shares of the company had lost 10.25% in the past month. In that same time, the Basic Materials sector lost 6.35%, while the S&P 500 gained 3.15%.

Market participants will be closely following the financial results of VALE S.A. in its upcoming release. The company is expected to report EPS of $0.52, up 160% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $10.29 billion, indicating a 6.36% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.18 per share and revenue of $42.21 billion, which would represent changes of +19.13% and +1.02%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for VALE S.A. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. VALE S.A. presently features a Zacks Rank of #4 (Sell).

In the context of valuation, VALE S.A. is at present trading with a Forward P/E ratio of 5.19. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 5.19.

It is also worth noting that VALE currently has a PEG ratio of 4.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Iron was holding an average PEG ratio of 4.99 at yesterday's closing price.

The Mining - Iron industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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

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Zacks Investment Research