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Valero Energy (VLO) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest close session, Valero Energy (VLO - Free Report) was up +2.35% at $166.44. This change outpaced the S&P 500's 0.44% gain on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 0.7%.

The oil refiner's stock has climbed by 11.87% in the past month, exceeding the Oils-Energy sector's gain of 3.62% and the S&P 500's gain of 4.03%.

The investment community will be closely monitoring the performance of Valero Energy in its forthcoming earnings report. The company is scheduled to release its earnings on October 23, 2025. The company's upcoming EPS is projected at $3.15, signifying a 176.32% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $29.53 billion, indicating a 10.17% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.95 per share and a revenue of $117.35 billion, representing changes of -6.25% and -9.64%, respectively, from the prior 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 business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 last 30 days, the Zacks Consensus EPS estimate has moved 10.84% higher. Valero Energy is currently a Zacks Rank #3 (Hold).

In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 20.45. For comparison, its industry has an average Forward P/E of 16.7, which means Valero Energy is trading at a premium to the group.

Also, we should mention that VLO has a PEG ratio of 1.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Oil and Gas - Refining and Marketing industry stood at 1.48 at the close of the market yesterday.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow VLO in the coming trading sessions, be sure to utilize Zacks.com.


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