In the latest trading session, Valero Energy (VLO) closed at $161.83, marking a +2.84% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.27% for the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.37%.
The oil refiner's shares have seen an increase of 19.42% over the last month, surpassing the Oils-Energy sector's gain of 0.87% and the S&P 500's gain of 1.85%.
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 October 23, 2025. It is anticipated that the company will report an EPS of $3, marking a 163.16% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $29.5 billion, reflecting a 10.28% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.25 per share and revenue of $117.3 billion, which would represent changes of -14.5% and -9.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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 holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Valero Energy is currently exchanging hands at a Forward P/E ratio of 21.69. Its industry sports an average Forward P/E of 18.14, so one might conclude that Valero Energy is trading at a premium comparatively.
It's also important to note that VLO currently trades at a PEG ratio of 1.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 1.53 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 55, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Valero Energy Corporation (VLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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