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In the latest trading session, Valero Energy (VLO) closed at $139.63, marking a -0.77% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.5%.
Heading into today, shares of the oil refiner had gained 17.57% over the past month, outpacing the Oils-Energy sector's loss of 1.71% and the S&P 500's gain of 2.52% in that time.
The investment community will be closely monitoring the performance of Valero Energy in its forthcoming earnings report. The company is scheduled to release its earnings on January 30, 2025. The company is expected to report EPS of $0.14, down 96.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $30.75 billion, down 13.16% from the prior-year quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Valero Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 12.3% fall in the Zacks Consensus EPS estimate. Valero Energy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Valero Energy is presently being traded at a Forward P/E ratio of 17.56. For comparison, its industry has an average Forward P/E of 16.98, which means Valero Energy is trading at a premium to the group.
We can also see that VLO currently has a PEG ratio of 2.93. 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 was holding an average PEG ratio of 2.93 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.