Here's Why Valero Energy (VLO) Fell More Than Broader Market
In the latest market close, Valero Energy (VLO) reached $132.42, with a -1.2% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.85%. Meanwhile, the Dow experienced a drop of 0.75%, and the technology-dominated Nasdaq saw a decrease of 0.96%.
Shares of the oil refiner witnessed a loss of 6.25% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 0.48% and the S&P 500's loss of 3.02%.
The upcoming earnings release of Valero Energy will be of great interest to investors. The company's earnings report is expected on October 26, 2023. In that report, analysts expect Valero Energy to post earnings of $7.52 per share. This would mark year-over-year growth of 5.32%. Meanwhile, our latest consensus estimate is calling for revenue of $37.9 billion, down 14.74% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $25.97 per share and a revenue of $149.71 billion, signifying shifts of -10.94% and -15.12%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Valero Energy. These revisions help to show the ever-changing nature of near-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 demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 3.81% rise in the Zacks Consensus EPS estimate. Valero Energy is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Valero Energy is holding a Forward P/E ratio of 5.16. This represents a discount compared to its industry's average Forward P/E of 6.98.
Investors should also note that VLO has a PEG ratio of 0.86 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 16, finds itself in the top 7% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
