In the latest trading session, Valero Energy (VLO - Free Report) closed at $84.73, marking a +0.36% move from the previous day. This move lagged the S&P 500's daily gain of 0.46%. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq added 0.59%.
Coming into today, shares of the oil refiner had gained 9.28% in the past month. In that same time, the Oils-Energy sector gained 3.51%, while the S&P 500 gained 4.04%.
Wall Street will be looking for positivity from VLO as it approaches its next earnings report date. This is expected to be July 25, 2019. In that report, analysts expect VLO to post earnings of $1.80 per share. This would mark a year-over-year decline of 16.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.08 billion, down 6.23% from the year-ago period.
VLO's full-year Zacks Consensus Estimates are calling for earnings of $5.89 per share and revenue of $111.98 billion. These results would represent year-over-year changes of -20.08% and -4.32%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.1% lower. VLO is currently a Zacks Rank #3 (Hold).
In terms of valuation, VLO is currently trading at a Forward P/E ratio of 14.34. This valuation marks a discount compared to its industry's average Forward P/E of 14.74.
We can also see that VLO currently has a PEG ratio of 1.79. 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. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.