Valero Energy (VLO) Stock Falls Amid Market Uptick: What Investors Need to Know
The latest trading session saw Valero Energy (VLO) ending at $129, denoting a -1.01% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.18%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.1%.
Prior to today's trading, shares of the oil refiner had gained 6.75% over the past month. This has outpaced the Oils-Energy sector's gain of 1.79% and the S&P 500's gain of 2.75% in that time.
The investment community will be paying close attention to the earnings performance of Valero Energy in its upcoming release. The company is slated to reveal its earnings on January 25, 2024. The company's earnings per share (EPS) are projected to be $3.29, reflecting a 61.07% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.42 billion, down 10.36% from the year-ago period.
Any recent changes to analyst estimates for Valero Energy should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.08% lower. Valero Energy presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 8.89. This expresses a discount compared to the average Forward P/E of 10.36 of its industry.
It's also important to note that VLO currently trades at a PEG ratio of 1.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 1.6.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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
