Valero Energy (VLO) closed at $107.39 in the latest trading session, marking a -1.72% move from the prior day. This change lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.
Heading into today, shares of the oil refiner had gained 2.08% over the past month, outpacing the Oils-Energy sector's gain of 1.56% and lagging the S&P 500's gain of 4.14% in that time.
Valero Energy will be looking to display strength as it nears its next earnings release. On that day, Valero Energy is projected to report earnings of $5.65 per share, which would represent a year-over-year decline of 50.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.65 billion, down 30.96% from the year-ago period.
VLO's full-year Zacks Consensus Estimates are calling for earnings of $22.54 per share and revenue of $143.41 billion. These results would represent year-over-year changes of -22.7% and -18.69%, respectively.
Investors might also notice recent changes to 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 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.
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. Within the past 30 days, our consensus EPS projection has moved 4.74% lower. Valero Energy currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Valero Energy currently has a Forward P/E ratio of 4.85. Its industry sports an average Forward P/E of 6.43, so we one might conclude that Valero Energy is trading at a discount comparatively.
It is also worth noting that VLO currently has a PEG ratio of 0.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.81 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 97, which puts it in the top 39% 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.
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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