VALE S.A. (VALE) Outperforms Broader Market: What You Need to Know

The latest trading session saw VALE S.A. (VALE) ending at $13.47, denoting a +1.81% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.51% for the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.58%.

Shares of the company have depreciated by 1.34% over the course of the past month, underperforming the Basic Materials sector's gain of 4.25% and the S&P 500's gain of 2.94%.

Market participants will be closely following the financial results of VALE S.A. in its upcoming release. The company is forecasted to report an EPS of $0.62, showcasing a 51.22% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.68 billion, indicating a 14.75% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.60 per share and a revenue of $42.97 billion, signifying shifts of +42.08% and +2.83%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for VALE S.A. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.64% downward. Right now, VALE S.A. possesses a Zacks Rank of #3 (Hold).

With respect to valuation, VALE S.A. is currently being traded at a Forward P/E ratio of 5.09. This denotes no noticeable deviation relative to the industry's average Forward P/E of 5.09.

The Mining - Iron industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 36% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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