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The most recent trading session ended with Valero Energy (VLO) standing at $128.97, reflecting a -0.15% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
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The the stock of oil refiner has risen by 12.43% in the past month, leading the Oils-Energy sector's gain of 2.31% and the S&P 500's gain of 6.43%.
The upcoming earnings release of Valero Energy will be of great interest to investors. The company's upcoming EPS is projected at $2.54, signifying a 6.27% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $27.88 billion, down 19.16% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $6.08 per share and a revenue of $115.97 billion, demonstrating changes of -28.3% and -10.71%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Valero Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. The Zacks Consensus EPS estimate has moved 0.35% lower within the past month. As of now, Valero Energy holds a Zacks Rank of #3 (Hold).
With respect to valuation, Valero Energy is currently being traded at a Forward P/E ratio of 21.23. This signifies a premium in comparison to the average Forward P/E of 16.76 for its industry.
We can also see that VLO currently has a PEG ratio of 2.29. 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. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 1.48.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 139, placing it within the bottom 44% of over 250 industries.