In the latest trading session, Valero Energy (VLO) closed at $178.27, marking a -1.27% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.62% for the day. Elsewhere, the Dow gained 0.99%, while the tech-heavy Nasdaq added 0.65%.
Shares of the oil refiner witnessed a gain of 4.04% over the previous month, beating the performance of the Oils-Energy sector with its gain of 0.26%, and the S&P 500's gain of 0.59%.
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 29, 2026. The company is predicted to post an EPS of $3.1, indicating a 384.38% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $29.03 billion, reflecting a 5.62% fall from the equivalent quarter last year.
VLO's full-year Zacks Consensus Estimates are calling for earnings of $9.97 per share and revenue of $121.67 billion. These results would represent year-over-year changes of +17.57% and 0%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Valero Energy. These revisions help to show the ever-changing nature of 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. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.26% lower. Valero Energy is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Valero Energy is presently trading at a Forward P/E ratio of 14.46. This indicates a premium in contrast to its industry's Forward P/E of 11.86.
Also, we should mention that VLO has a PEG ratio of 1.03. 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 of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 1.03.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 41% echelons of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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