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Why Valero Energy (VLO) Outpaced the Stock Market Today
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Valero Energy (VLO - Free Report) closed at $258.26 in the latest trading session, marking a +2.27% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq added 0.03%.
Shares of the oil refiner have appreciated by 0.35% over the course of the past month, outperforming the Oils-Energy sector's loss of 3.92%, and lagging the S&P 500's gain of 5.25%.
Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company is predicted to post an EPS of $7.09, indicating a 210.96% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $35.73 billion, up 19.54% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $26.51 per share and revenue of $133.18 billion, which would represent changes of +149.86% and +8.56%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% upward. Currently, Valero Energy is carrying a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 9.52. This signifies a premium in comparison to the average Forward P/E of 9.4 for its industry.
Also, we should mention that VLO has a PEG ratio of 0.37. 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 the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 0.37.
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 6, placing it within the top 3% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why Valero Energy (VLO) Outpaced the Stock Market Today
Valero Energy (VLO - Free Report) closed at $258.26 in the latest trading session, marking a +2.27% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq added 0.03%.
Shares of the oil refiner have appreciated by 0.35% over the course of the past month, outperforming the Oils-Energy sector's loss of 3.92%, and lagging the S&P 500's gain of 5.25%.
Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company is predicted to post an EPS of $7.09, indicating a 210.96% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $35.73 billion, up 19.54% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $26.51 per share and revenue of $133.18 billion, which would represent changes of +149.86% and +8.56%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% upward. Currently, Valero Energy is carrying a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 9.52. This signifies a premium in comparison to the average Forward P/E of 9.4 for its industry.
Also, we should mention that VLO has a PEG ratio of 0.37. 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 the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 0.37.
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 6, placing it within the top 3% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.