Valero Energy (VLO - Free Report) closed the most recent trading day at $79.20, moving +0.75% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Heading into today, shares of the oil refiner had lost 14.24% over the past month, lagging the Oils-Energy sector's loss of 9.51% and the S&P 500's loss of 4.37% in that time.
VLO will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. On that day, VLO is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 10.34%. Meanwhile, our latest consensus estimate is calling for revenue of $30.87 billion, up 16.98% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.48 per share and revenue of $118.14 billion, which would represent changes of +30.65% and +25.71%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for VLO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.94% higher. VLO currently has a Zacks Rank of #3 (Hold).
Digging into valuation, VLO currently has a Forward P/E ratio of 12.14. For comparison, its industry has an average Forward P/E of 12.58, which means VLO is trading at a discount to the group.
Also, we should mention that VLO has a PEG ratio of 0.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.98 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 104, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.