In the latest market close, Valero Energy (VLO) reached $105.18, with a -1.4% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.57%. Elsewhere, the Dow lost 0.84%, while the tech-heavy Nasdaq lost 2.15%.
Shares of the oil refiner have depreciated by 15.88% over the course of the past month, underperforming the Oils-Energy sector's loss of 9.78% and the S&P 500's loss of 12.16%.
Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company plans to announce its earnings on April 24, 2025. The company is expected to report EPS of $1.88, down 50.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.54 billion, down 10.14% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.60 per share and a revenue of $118.28 billion, indicating changes of -10.38% and -8.93%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Valero Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.89% lower within the past month. Valero Energy is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Valero Energy is currently exchanging hands at a Forward P/E ratio of 14.04. For comparison, its industry has an average Forward P/E of 15.11, which means Valero Energy is trading at a discount to the group.
It is also worth noting that VLO currently has a PEG ratio of 2.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 2.34.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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