Have you been paying attention to shares of Valero Energy (VLO Quick QuoteVLO - Free Report) ? Shares have been on the move with the stock up 7.5% over the past month. The stock hit a new 52-week high of $324.38 in the previous session. Valero Energy has gained 99% since the start of the year compared to the 28.6% move for the Zacks Oils-Energy sector and the 72.1% return for the Zacks Oil and Gas - Refining and Marketing industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 30, 2026, Valero Energy reported EPS of $12.54 versus consensus estimate of $9.87.

For the current fiscal year, Valero Energy is expected to post earnings of $40.62 per share on $141.16 in revenues. This represents a 282.85% change in EPS on a 15.05% change in revenues. For the next fiscal year, the company is expected to earn $29.17 per share on $134.21 in revenues. This represents a year-over-year change of -28.21% and -4.92%, respectively.

Valuation Metrics

Though Valero Energy has recently hit a 52-week high, what is next for Valero Energy? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Valero Energy has a Value Score of A. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 8.3X. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 8.9X. Additionally, the stock has a PEG ratio of 0.21. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Valero Energy an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Valero Energy currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Valero Energy fits the bill. Thus, it seems as though Valero Energy shares could still be poised for more gains ahead.

How Does VLO Stack Up to the Competition?

Shares of VLO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is HF Sinclair Corporation (DINO Quick QuoteDINO - Free Report) . DINO has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.

Earnings were strong last quarter. HF Sinclair Corporation beat our consensus estimate by 20.96%, and for the current fiscal year, DINO is expected to post earnings of $11.85 per share on revenue of $32.52 billion.

Shares of HF Sinclair Corporation have gained 2.9% over the past month, and currently trade at a forward P/E of 7.22X and a P/CF of 8.46X.

The Oil and Gas - Refining and Marketing industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VLO and DINO, even beyond their own solid fundamental situation.