In the latest trading session, Valero Energy (VLO - Free Report) closed at $77.09, marking a +0.1% move from the previous day. This change lagged the S&P 500's 0.7% gain on the day. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 1.26%.
Coming into today, shares of the oil refiner had lost 2.32% in the past month. In that same time, the Oils-Energy sector lost 5.5%, while the S&P 500 lost 6.13%.
Wall Street will be looking for positivity from VLO as it approaches its next earnings report date. This is expected to be January 31, 2019. The company is expected to report EPS of $0.79, down 31.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.11 billion, up 10.3% from the year-ago period.
Any recent changes to analyst estimates for VLO should also be noted by investors. 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. Within the past 30 days, our consensus EPS projection has moved 3.14% lower. VLO is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that VLO has a Forward P/E ratio of 8.65 right now. Its industry sports an average Forward P/E of 9.7, so we one might conclude that VLO is trading at a discount comparatively.
We can also see that VLO currently has a PEG ratio of 0.22. 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. VLO's industry had an average PEG ratio of 0.79 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 60, which puts 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.
You can find more information on all of these metrics, and much more, on Zacks.com.