In the latest trading session, Valero Energy (VLO) closed at $70.61, marking a -0.52% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.58%. At the same time, the Dow lost 1.99%, and the tech-heavy Nasdaq lost 1.63%.
Prior to today's trading, shares of the oil refiner had lost 10.38% over the past month. This has was narrower than the Oils-Energy sector's loss of 11.28% and lagged the S&P 500's loss of 6.62% in that time.
Wall Street will be looking for positivity from VLO as it approaches its next earnings report date. This is expected to be February 7, 2019. The company is expected to report EPS of $0.88, down 24.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $29.11 billion, up 10.3% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.13 per share and revenue of $116.08 billion, which would represent changes of +23.59% and +23.52%, respectively, from the prior year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.07% lower within the past month. VLO is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, VLO is currently trading at a Forward P/E ratio of 11.58. For comparison, its industry has an average Forward P/E of 11.51, which means VLO is trading at a premium to the group.
Investors should also note that VLO has a PEG ratio of 0.3 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 80, putting it in the top 31% 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
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