Valero Energy (VLO) Gains But Lags Market: What You Should Know
Valero Energy (VLO) closed at $136.95 in the latest trading session, marking a +0.68% move from the prior day. The stock lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 5.16%.
Heading into today, shares of the oil refiner had gained 3.26% over the past month, outpacing the Oils-Energy sector's loss of 4.02% and the S&P 500's gain of 0.27% in that time.
Valero Energy will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2023. The company is expected to report EPS of $6.58, up 184.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.09 billion, down 14.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.87 per share and revenue of $147.03 billion, which would represent changes of -18.14% and -16.64%, respectively, from the prior year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.4% higher. Valero Energy is currently a Zacks Rank #2 (Buy).
In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 5.7. This represents a discount compared to its industry's average Forward P/E of 6.55.
It is also worth noting that VLO currently has a PEG ratio of 0.95. 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 0.68 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 67, which puts it in the top 27% 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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