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Valero Energy (VLO) Gains But Lags Market: What You Should Know

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Valero Energy (VLO - Free Report) closed at $93.61 in the latest trading session, marking a +0.67% move from the prior day. This change lagged the S&P 500's 0.91% gain on the day. Elsewhere, the Dow gained 1.22%, while the tech-heavy Nasdaq added 1%.

Coming into today, shares of the oil refiner had lost 8.29% in the past month. In that same time, the Oils-Energy sector lost 4.55%, while the S&P 500 gained 1.65%.

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 $1.66 per share. This would mark a year-over-year decline of 21.7%. Our most recent consensus estimate is calling for quarterly revenue of $25.11 billion, down 12.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.83 per share and revenue of $104.36 billion, which would represent changes of -34.46% and -10.83%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for VLO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. VLO is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, VLO currently has a Forward P/E ratio of 19.25. Its industry sports an average Forward P/E of 18.75, so we one might conclude that VLO is trading at a premium comparatively.

We can also see that VLO currently has a PEG ratio of 2.41. 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 2.41 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% 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.

To follow VLO in the coming trading sessions, be sure to utilize Zacks.com.


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