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

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Valero Energy (VLO - Free Report) closed the most recent trading day at $68.69, making no change from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.14%. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.

Heading into today, shares of the oil refiner had lost 0.55% over the past month, outpacing the Oils-Energy sector's loss of 4.84% and the S&P 500's loss of 1.37% in that time.

Investors will be hoping for strength from Valero Energy as it approaches its next earnings release, which is expected to be January 27, 2022. In that report, analysts expect Valero Energy to post earnings of $1.31 per share. This would mark year-over-year growth of 223.58%. Meanwhile, our latest consensus estimate is calling for revenue of $28.78 billion, up 73.34% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.19 per share and revenue of $107.2 billion. These totals would mark changes of +138.14% and +65.14%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Valero Energy. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 5.12% lower within the past month. Valero Energy is currently a Zacks Rank #3 (Hold).

In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 57.92. For comparison, its industry has an average Forward P/E of 17.82, which means Valero Energy is trading at a premium to the group.

Meanwhile, VLO's PEG ratio is currently 12.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 1.34 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 208, which puts it in the bottom 19% 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.

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