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Valero Energy (VLO) Gains As Market Dips: What You Should Know

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In the latest trading session, Valero Energy (VLO - Free Report) closed at $141.77, marking a +2.91% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.84%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.91%.

The oil refiner's stock has climbed by 1.49% in the past month, exceeding the Oils-Energy sector's loss of 0% and the S&P 500's gain of 1.44%.

Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company plans to announce its earnings on July 24, 2025. The company is forecasted to report an EPS of $1.66, showcasing a 38.75% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $27.88 billion, showing a 19.16% drop compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.1 per share and a revenue of $115.97 billion, indicating changes of -28.07% and -10.71%, respectively, from the former year.

Any recent changes to analyst estimates for Valero Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% lower. Valero Energy presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 22.58. Its industry sports an average Forward P/E of 17.35, so one might conclude that Valero Energy is trading at a premium comparatively.

One should further note that VLO currently holds a PEG ratio of 2.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 1.61 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 143, finds itself in the bottom 42% echelons 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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