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Valero Energy (VLO) Ascends While Market Falls: Some Facts to Note

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In the latest trading session, Valero Energy (VLO - Free Report) closed at $149.53, marking a +0.34% move from the previous day. This change outpaced the S&P 500's 0.65% loss on the day. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq decreased by 1.16%.

The oil refiner's stock has climbed by 5.1% in the past month, exceeding the Oils-Energy sector's gain of 4.75% and the S&P 500's gain of 3.4%.

Market participants will be closely following the financial results of Valero Energy in its upcoming release. In that report, analysts expect Valero Energy to post earnings of $2.87 per share. This would mark a year-over-year decline of 65.3%. At the same time, our most recent consensus estimate is projecting a revenue of $31.96 billion, reflecting a 12.28% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.11 per share and revenue of $133.46 billion. These totals would mark changes of -39.32% and -7.81%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Valero Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 4.1% higher. Valero Energy is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Valero Energy's current valuation metrics, including its Forward P/E ratio of 9.87. For comparison, its industry has an average Forward P/E of 11.93, which means Valero Energy is trading at a discount to the group.

Investors should also note that VLO has a PEG ratio of 1.64 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Refining and Marketing industry had an average PEG ratio of 1.77.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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