Valero Energy (VLO) Laps the Stock Market: Here's Why
The latest trading session saw Valero Energy (VLO) ending at $169.57, denoting a +1.3% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.89% for the day. On the other hand, the Dow registered a gain of 1.03%, and the technology-centric Nasdaq increased by 1.25%.
Shares of the oil refiner witnessed a gain of 23.97% over the previous month, beating the performance of the Oils-Energy sector with its gain of 5.25% and the S&P 500's gain of 3.56%.
Investors will be eagerly watching for the performance of Valero Energy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 25, 2024. The company's upcoming EPS is projected at $3.14, signifying a 62.03% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $32.05 billion, down 12.05% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.66 per share and a revenue of $133.63 billion, signifying shifts of -37.11% and -7.69%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 9.12% rise in the Zacks Consensus EPS estimate. Valero Energy currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Valero Energy is presently trading at a Forward P/E ratio of 10.69. This represents a discount compared to its industry's average Forward P/E of 12.51.
It's also important to note that VLO currently trades at a PEG ratio of 1.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Oil and Gas - Refining and Marketing industry stood at 1.93 at the close of the market yesterday.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
