In the latest trading session, Valero Energy (VLO) closed at $103.93, marking a -0.57% move from the previous day. This change lagged the S&P 500's 3.06% gain on the day. At the same time, the Dow added 2.68%, and the tech-heavy Nasdaq lost 0.08%.
Coming into today, shares of the oil refiner had lost 18.41% in the past month. In that same time, the Oils-Energy sector lost 12.66%, while the S&P 500 lost 4.31%.
Valero Energy will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. The company is expected to report EPS of $6.33, up 1218.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.92 billion, up 36.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.68 per share and revenue of $151.57 billion. These totals would mark changes of +493.59% and +32.98%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 18.42% higher. Valero Energy is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 6.27. This represents a discount compared to its industry's average Forward P/E of 8.55.
Investors should also note that VLO has a PEG ratio of 1.04 right now. 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 industry currently had an average PEG ratio of 0.6 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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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