In the latest trading session, Valero Energy (VLO) closed at $49.76, marking a -1.09% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.97%. Elsewhere, the Dow lost 2.57%, while the tech-heavy Nasdaq lost 3.47%.
Coming into today, shares of the oil refiner had gained 54.23% in the past month. In that same time, the Oils-Energy sector gained 26.58%, while the S&P 500 gained 22.85%.
Investors will be hoping for strength from VLO as it approaches its next earnings release, which is expected to be April 29, 2020. In that report, analysts expect VLO to post earnings of $0.17 per share. This would mark a year-over-year decline of 50%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.33 per share and revenue of $67.54 billion, which would represent changes of -76.67% and -37.65%, respectively, from the prior year.
Investors should also note any 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 75.3% lower within the past month. VLO currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that VLO has a Forward P/E ratio of 37.79 right now. This represents a premium compared to its industry's average Forward P/E of 15.08.
Investors should also note that VLO has a PEG ratio of 3.06 right now. 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 was holding an average PEG ratio of 2.66 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 168, which puts it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.