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Valero Energy (VLO) Rises As Market Takes a Dip: Key Facts

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Valero Energy (VLO - Free Report) ended the recent trading session at $159.39, demonstrating a +0.48% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.3%.

The the stock of oil refiner has risen by 12.47% in the past month, leading the Oils-Energy sector's gain of 6.58% and the S&P 500's gain of 4.42%.

Investors will be eagerly watching for the performance of Valero Energy in its upcoming earnings disclosure. In that report, analysts expect Valero Energy to post earnings of $2.96 per share. This would mark a year-over-year decline of 64.21%. Meanwhile, our latest consensus estimate is calling for revenue of $31.96 billion, down 12.28% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.34 per share and revenue of $133.46 billion, indicating changes of -38.39% and -7.81%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Valero Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.73% higher. Valero Energy presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Valero Energy is currently being traded at a Forward P/E ratio of 10.34. This indicates a discount in contrast to its industry's Forward P/E of 11.81.

One should further note that VLO currently holds a PEG ratio of 1.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 1.85.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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