In the latest trading session, Valero Energy (VLO) closed at $70.41, marking a +1% move from the previous day. This change lagged the S&P 500’s 1.17% gain on the day. Meanwhile, the Dow gained 1.87%, and the Nasdaq, a tech-heavy index, added 0.57%.
Coming into today, shares of the oil refiner had lost 10.54% in the past month. In that same time, the Oils-Energy sector lost 3.99%, while the S&P 500 lost 2.46%.
Wall Street will be looking for positivity from Valero Energy as it approaches its next earnings report date. The company is expected to report EPS of $1.37, up 229.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $28.97 billion, up 74.46% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $107.32 billion, which would represent changes of +140.06% and +65.33%, respectively, from the prior year.
Any recent changes to analyst estimates for Valero Energy should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Valero Energy is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Valero Energy has a Forward P/E ratio of 55.77 right now. This represents a premium compared to its industry’s average Forward P/E of 17.6.
Meanwhile, VLO’s PEG ratio is currently 12.43. 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 1.36 at yesterday’s closing price.
The Oil and Gas – Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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