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

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VALE S.A. (VALE - Free Report) closed at $10.18 in the latest trading session, marking a +0.99% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 1.07%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, lost 1.71%.

Prior to today's trading, shares of the company had gained 3.28% over the past month. This has outpaced the Basic Materials sector's loss of 0.56% and the S&P 500's loss of 7.03% in that time.

The upcoming earnings release of VALE S.A. will be of great interest to investors. The company is predicted to post an EPS of $0.43, indicating a 10.26% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $8.81 billion, reflecting a 4.09% rise from the equivalent quarter last year.

VALE's full-year Zacks Consensus Estimates are calling for earnings of $1.86 per share and revenue of $39.71 billion. These results would represent year-over-year changes of +2.2% and +4.34%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for VALE S.A. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.65% increase. VALE S.A. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, VALE S.A. is holding a Forward P/E ratio of 5.41. This expresses no noticeable deviation compared to the average Forward P/E of 5.41 of its industry.

We can also see that VALE currently has a PEG ratio of 0.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Mining - Iron stocks are, on average, holding a PEG ratio of 0.31 based on yesterday's closing prices.

The Mining - Iron industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 33% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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