Valero Energy (VLO) ended the recent trading session at $162.82, demonstrating a -3.03% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.24%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.23%.
Heading into today, shares of the oil refiner had lost 5.89% over the past month, lagging the Oils-Energy sector's loss of 1.72% and the S&P 500's gain of 1.31%.
Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company plans to announce its earnings on January 29, 2026. On that day, Valero Energy is projected to report earnings of $3.22 per share, which would represent year-over-year growth of 403.13%. In the meantime, our current consensus estimate forecasts the revenue to be $29.13 billion, indicating a 5.28% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.07 per share and revenue of $121.45 billion, indicating changes of +18.75% and -6.49%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Valero Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.73% upward. As of now, Valero Energy holds a Zacks Rank of #3 (Hold).
Looking at valuation, Valero Energy is presently trading at a Forward P/E ratio of 16.67. Its industry sports an average Forward P/E of 14.05, so one might conclude that Valero Energy is trading at a premium comparatively.
We can also see that VLO currently has a PEG ratio of 1.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 1.19 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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