Valero Energy (VLO) Beats Stock Market Upswing: What Investors Need to Know
Valero Energy (VLO) closed at $143.28 in the latest trading session, marking a +1.29% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a gain of 0.23%, and the technology-centric Nasdaq increased by 1.14%.
Shares of the oil refiner witnessed a gain of 2.29% over the previous month, beating the performance of the Oils-Energy sector with its gain of 2.25% and underperforming the S&P 500's gain of 5.2%.
The investment community will be paying close attention to the earnings performance of Valero Energy in its upcoming release. The company is expected to report EPS of $2.87, down 65.3% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $31.96 billion, showing a 12.28% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.11 per share and a revenue of $133.46 billion, representing changes of -39.32% and -7.81%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Valero Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.97% increase. Currently, Valero Energy is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Valero Energy is currently exchanging hands at a Forward P/E ratio of 9.36. This denotes a discount relative to the industry's average Forward P/E of 11.34.
We can also see that VLO currently has a PEG ratio of 1.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 1.69 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 99, this industry ranks in the top 40% of all industries, numbering over 250.
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
