Back to top

Image: Bigstock

Why Valero Energy (VLO) Dipped More Than Broader Market Today

Read MoreHide Full Article

The most recent trading session ended with Valero Energy (VLO - Free Report) standing at $128.97, reflecting a -0.15% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw a decrease of 0.32%.

The the stock of oil refiner has risen by 12.43% in the past month, leading the Oils-Energy sector's gain of 2.31% and the S&P 500's gain of 6.43%.

The upcoming earnings release of Valero Energy will be of great interest to investors. The company's upcoming EPS is projected at $2.54, signifying a 6.27% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $27.88 billion, down 19.16% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $6.08 per share and a revenue of $115.97 billion, demonstrating changes of -28.3% and -10.71%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Valero Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.35% lower within the past month. As of now, Valero Energy holds a Zacks Rank of #3 (Hold).

With respect to valuation, Valero Energy is currently being traded at a Forward P/E ratio of 21.23. This signifies a premium in comparison to the average Forward P/E of 16.76 for its industry.

We can also see that VLO currently has a PEG ratio of 2.29. 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. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 1.48.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 139, placing it within the bottom 44% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Valero Energy Corporation (VLO) - free report >>

Published in