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Valero Energy (VLO) Rises But Trails Market: What Investors Should Know
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Valero Energy (VLO - Free Report) closed the latest trading day at $139.08, indicating a +0.38% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.56%. Elsewhere, the Dow saw an upswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.83%.
Shares of the oil refiner have appreciated by 6.78% over the course of the past month, outperforming the Oils-Energy sector's gain of 4.4% and the S&P 500's gain of 3.11%.
Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company is expected to report EPS of $0.77, down 78.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.06 billion, down 9.48% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.92 per share and a revenue of $131.15 billion, indicating changes of -64.18% and -9.4%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Valero Energy. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 4.29% lower within the past month. Valero Energy is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Valero Energy is currently being traded at a Forward P/E ratio of 15.53. Its industry sports an average Forward P/E of 16.33, so one might conclude that Valero Energy is trading at a discount comparatively.
Investors should also note that VLO has a PEG ratio of 2.59 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 2.59 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 208, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Rises But Trails Market: What Investors Should Know
Valero Energy (VLO - Free Report) closed the latest trading day at $139.08, indicating a +0.38% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.56%. Elsewhere, the Dow saw an upswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.83%.
Shares of the oil refiner have appreciated by 6.78% over the course of the past month, outperforming the Oils-Energy sector's gain of 4.4% and the S&P 500's gain of 3.11%.
Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company is expected to report EPS of $0.77, down 78.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.06 billion, down 9.48% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.92 per share and a revenue of $131.15 billion, indicating changes of -64.18% and -9.4%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Valero Energy. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 4.29% lower within the past month. Valero Energy is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Valero Energy is currently being traded at a Forward P/E ratio of 15.53. Its industry sports an average Forward P/E of 16.33, so one might conclude that Valero Energy is trading at a discount comparatively.
Investors should also note that VLO has a PEG ratio of 2.59 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 2.59 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 208, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.