Valero Energy (VLO) closed at $83.24 in the latest trading session, marking a -0.1% move from the prior day. This change lagged the S&P 500's 0.88% gain on the day.
Coming into today, shares of the oil refiner had gained 3.55% in the past month. In that same time, the Oils-Energy sector gained 9.06%, while the S&P 500 gained 0.15%.
VLO will be looking to display strength as it nears its next earnings release. On that day, VLO is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 160.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.34 billion, up 114.84% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $90.61 billion, which would represent changes of +142.95% and +39.59%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 37.33% higher. VLO currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, VLO is holding a Forward P/E ratio of 62.33. Its industry sports an average Forward P/E of 26.56, so we one might conclude that VLO is trading at a premium comparatively.
Investors should also note that VLO has a PEG ratio of 11.36 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VLO's industry had an average PEG ratio of 3.06 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
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