Valero Energy (VLO) Rises Higher Than Market: Key Facts
The latest trading session saw Valero Energy (VLO) ending at $132.20, denoting a +0.21% adjustment from its last day's close. This change outpaced the S&P 500's 0.17% gain on the day. Meanwhile, the Dow experienced a drop of 0.05%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Shares of the oil refiner witnessed a gain of 5.23% over the previous month, beating the performance of the Oils-Energy sector with its gain of 1.03% and the S&P 500's gain of 4.71%.
The investment community will be closely monitoring the performance of Valero Energy in its forthcoming earnings report. The company is scheduled to release its earnings on January 25, 2024. In that report, analysts expect Valero Energy to post earnings of $3.31 per share. This would mark a year-over-year decline of 60.83%. At the same time, our most recent consensus estimate is projecting a revenue of $37.42 billion, reflecting a 10.36% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $24.65 per share and revenue of $146.77 billion. These totals would mark changes of -15.47% and -16.79%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Valero Energy. These revisions help to show the ever-changing nature of 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 shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.79% fall in the Zacks Consensus EPS estimate. Valero Energy presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Valero Energy is presently trading at a Forward P/E ratio of 5.35. This signifies a discount in comparison to the average Forward P/E of 7.02 for its industry.
One should further note that VLO currently holds a PEG ratio of 0.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 1.03.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 34% 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.
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
