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

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In the latest trading session, Valero Energy (VLO - Free Report) closed at $117.70, marking a +1.9% move from the previous day. This move outpaced the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq lost 0.02%.

Investors will be hoping for strength from Valero Energy as it approaches its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $7.90, up 547.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $41.79 billion, up 41.56% from the year-ago period.

VLO's full-year Zacks Consensus Estimates are calling for earnings of $27.88 per share and revenue of $173.73 billion. These results would represent year-over-year changes of +892.17% and +52.43%, respectively.

Investors should also note any recent changes to analyst estimates for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 1.36% higher within the past month. Valero Energy is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Valero Energy's current valuation metrics, including its Forward P/E ratio of 4.14. This valuation marks a discount compared to its industry's average Forward P/E of 5.48.

We can also see that VLO currently has a PEG ratio of 0.69. 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. VLO's industry had an average PEG ratio of 0.45 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 2, putting it in the top 1% 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.

To follow VLO in the coming trading sessions, be sure to utilize Zacks.com.


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