Valero Energy (VLO) Stock Sinks As Market Gains: What You Should Know
Valero Energy (VLO) closed the most recent trading day at $130.38, moving -1.05% from the previous trading session. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the oil refiner had gained 0.83% over the past month. This has outpaced the Oils-Energy sector's loss of 5.47% and the S&P 500's loss of 1.21% in that time.
Investors will be hoping for strength from Valero Energy as it approaches its next earnings release, which is expected to be April 27, 2023. In that report, analysts expect Valero Energy to post earnings of $6.62 per share. This would mark year-over-year growth of 186.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.55 billion, down 12.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.37 per share and revenue of $148.89 billion. These totals would mark changes of -16.43% and -15.58%, respectively, from last year.
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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.54% higher within the past month. Valero Energy is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Valero Energy has a Forward P/E ratio of 5.41 right now. This represents a discount compared to its industry's average Forward P/E of 6.39.
We can also see that VLO currently has a PEG ratio of 0.9. 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. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.66 based on yesterday's closing prices.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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