Back to top

Image: Bigstock

Valero Energy (VLO) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Valero Energy (VLO - Free Report) closed the most recent trading day at $71.39, moving -1.23% from the previous trading session. This change lagged the S&P 500's daily gain of 1.11%.

Heading into today, shares of the oil refiner had lost 11.4% over the past month, lagging the Oils-Energy sector's loss of 5.26% and the S&P 500's gain of 4.72% in that time.

VLO will be looking to display strength as it nears its next earnings release, which is expected to be April 22, 2021. The company is expected to report EPS of -$1.32, down 488.24% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $22.08 billion, down 0.11% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.31 per share and revenue of $92.21 billion. These totals would mark changes of +141.99% and +42.05%, respectively, from last year.

Any recent changes to analyst estimates for VLO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 3.74% higher within the past month. VLO is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, VLO is currently trading at a Forward P/E ratio of 49.69. This represents a premium compared to its industry's average Forward P/E of 23.65.

Also, we should mention that VLO has a PEG ratio of 9.06. 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. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 3.2 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Valero Energy Corporation (VLO) - free report >>

Published in