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Valero Energy (VLO) Rises Yet Lags Behind Market: Some Facts Worth Knowing

The most recent trading session ended with Valero Energy (VLO) standing at $154.59, reflecting a +0.1% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.26%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 0.35%.

Shares of the oil refiner witnessed a loss of 1.09% over the previous month, beating the performance of the Oils-Energy sector with its loss of 3.91% and underperforming the S&P 500's gain of 3.25%.

The investment community will be closely monitoring the performance of Valero Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $5.15, reflecting a 4.63% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $34.38 billion, indicating a 0.38% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $17.82 per share and revenue of $135.11 billion, which would represent changes of -28.43% and -6.67%, respectively, from the prior year.

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Any recent changes to analyst estimates for Valero Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.08% downward. Valero Energy currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Valero Energy is currently exchanging hands at a Forward P/E ratio of 8.67. For comparison, its industry has an average Forward P/E of 11.36, which means Valero Energy is trading at a discount to the group.

Meanwhile, VLO's PEG ratio is currently 1.44. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 1.75.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Valero Energy Corporation (VLO) : Free Stock Analysis Report

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