In the latest trading session, Valero Energy (VLO - Free Report) closed at $74.47, marking a +1.82% move from the previous day. This change outpaced the S&P 500's 0.61% gain on the day. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.53%.
Prior to today's trading, shares of the oil refiner had lost 11.24% over the past month. This has lagged the Oils-Energy sector's loss of 5.35% and the S&P 500's loss of 3.77% in that time.
Wall Street will be looking for positivity from VLO as it approaches its next earnings report date. In that report, analysts expect VLO to post earnings of $2.12 per share. This would mark a year-over-year decline of 1.4%. Our most recent consensus estimate is calling for quarterly revenue of $29.17 billion, down 5.96% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.52 per share and revenue of $112.32 billion. These totals would mark changes of -11.53% and -4.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for VLO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. VLO is currently a Zacks Rank #3 (Hold).
In terms of valuation, VLO is currently trading at a Forward P/E ratio of 11.21. This represents a discount compared to its industry's average Forward P/E of 13.34.
Also, we should mention that VLO has a PEG ratio of 1.4. 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. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 1.4 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 98, which puts it in the top 39% 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.