Valero Energy (VLO) Gains As Market Dips: What You Should Know
In the latest trading session, Valero Energy (VLO) closed at $126.41, marking a +1.64% move from the previous day. This change outpaced the S&P 500's 0.41% loss on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 6.67%.
Heading into today, shares of the oil refiner had lost 7.76% over the past month, lagging the Oils-Energy sector's loss of 3.55% and the S&P 500's loss of 4.4% in that time.
Valero Energy will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2023. The company is expected to report EPS of $6.16, up 149.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $41.12 billion, up 14.54% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $27.17 per share and revenue of $175.76 billion, which would represent changes of +866.9% and +54.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Valero Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.22% lower. Valero Energy is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Valero Energy currently has a Forward P/E ratio of 4.58. For comparison, its industry has an average Forward P/E of 5.32, which means Valero Energy is trading at a discount to the group.
Meanwhile, VLO's PEG ratio is currently 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.49 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
