Valero Energy (VLO) closed at $75.28 in the latest trading session, marking a +0.05% move from the prior day. The stock lagged the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.13%.
Prior to today's trading, shares of the oil refiner had lost 10.79% over the past month. This has lagged the Oils-Energy sector's loss of 7.94% and the S&P 500's loss of 2.95% in that time.
Wall Street will be looking for positivity from VLO as it approaches its next earnings report date. In that report, analysts expect VLO to post earnings of $1.73 per share. This would mark a year-over-year decline of 13.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.08 billion, down 12.22% from the year-ago period.
VLO's full-year Zacks Consensus Estimates are calling for earnings of $4.99 per share and revenue of $107.60 billion. These results would represent year-over-year changes of -32.29% and -8.06%, respectively.
Investors might also notice recent changes to analyst estimates for VLO. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.2% lower. VLO is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that VLO has a Forward P/E ratio of 15.08 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.58.
Meanwhile, VLO's PEG ratio is currently 1.89. 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 2.03 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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