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

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In the latest trading session, Valero Energy (VLO - Free Report) closed at $119.22, marking a +0.96% move from the previous day. This move outpaced the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.39%.

Heading into today, shares of the oil refiner had gained 4.86% over the past month, outpacing the Oils-Energy sector's of 0% and the S&P 500's loss of 3.51% in that time.

Investors will be hoping for strength from Valero Energy as it approaches its next earnings release, which is expected to be October 25, 2022. In that report, analysts expect Valero Energy to post earnings of $8.60 per share. This would mark year-over-year growth of 604.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.12 billion, up 42.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $27.55 per share and revenue of $173.97 billion, which would represent changes of +880.43% and +52.64%, respectively, from the prior year.

Any recent changes to analyst estimates for Valero Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 3.25% higher. Valero Energy is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Valero Energy's current valuation metrics, including its Forward P/E ratio of 4.29. For comparison, its industry has an average Forward P/E of 5.68, which means Valero Energy is trading at a discount to the group.

We can also see that VLO currently has a PEG ratio of 0.71. 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 0.46 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 5, which puts it in the top 2% 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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