Valero Energy (VLO) closed the most recent trading day at $352.36, moving +1.66% from the previous trading session. This change outpaced the S&P 500's 0.25% loss on the day. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, lost 0.52%.
Shares of the oil refiner witnessed a gain of 11.19% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.79%, and the S&P 500's gain of 4.34%.
Market participants will be closely following the financial results of Valero Energy in its upcoming release. In that report, analysts expect Valero Energy to post earnings of $15 per share. This would mark year-over-year growth of 309.84%. Meanwhile, our latest consensus estimate is calling for revenue of $36.53 billion, up 13.55% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $40.62 per share and revenue of $146.63 billion, which would represent changes of +282.85% and +19.52%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Valero Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 10.86% rise in the Zacks Consensus EPS estimate. At present, Valero Energy boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Valero Energy is presently being traded at a Forward P/E ratio of 8.53. This expresses no noticeable deviation compared to the average Forward P/E of 8.53 of its industry.
Investors should also note that VLO has a PEG ratio of 0.23 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 0.24.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Valero Energy Corporation (VLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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