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Valero Energy (VLO) Dips More Than Broader Markets: What You Should Know
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Valero Energy (VLO - Free Report) closed the most recent trading day at $129.90, moving -1.18% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.11%.
Coming into today, shares of the oil refiner had gained 4.07% in the past month. In that same time, the Oils-Energy sector gained 3.12%, while the S&P 500 lost 1.25%.
Valero Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.25, down 12.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.59 billion, down 17.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.16 per share and revenue of $144.71 billion. These totals would mark changes of -17.15% and -17.96%, respectively, from last year.
Any recent changes to analyst estimates for Valero Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 6.63% higher within the past month. Valero Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 5.44. Its industry sports an average Forward P/E of 6.85, so we one might conclude that Valero Energy is trading at a discount comparatively.
Investors should also note that VLO has a PEG ratio of 0.91 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 0.98 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 170, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Valero Energy (VLO) Dips More Than Broader Markets: What You Should Know
Valero Energy (VLO - Free Report) closed the most recent trading day at $129.90, moving -1.18% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.11%.
Coming into today, shares of the oil refiner had gained 4.07% in the past month. In that same time, the Oils-Energy sector gained 3.12%, while the S&P 500 lost 1.25%.
Valero Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.25, down 12.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.59 billion, down 17.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.16 per share and revenue of $144.71 billion. These totals would mark changes of -17.15% and -17.96%, respectively, from last year.
Any recent changes to analyst estimates for Valero Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 6.63% higher within the past month. Valero Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 5.44. Its industry sports an average Forward P/E of 6.85, so we one might conclude that Valero Energy is trading at a discount comparatively.
Investors should also note that VLO has a PEG ratio of 0.91 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 0.98 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 170, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.