Valero Energy (VLO) closed the most recent trading day at $179.62, moving -3.05% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.26%.
Heading into today, shares of the oil refiner had gained 10.09% over the past month, outpacing the Oils-Energy sector's loss of 0.36% and the S&P 500's gain of 1.89%.
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 $2.93, indicating a 357.81% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $29.03 billion, indicating a 5.62% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.83 per share and revenue of $121.67 billion, which would represent changes of +15.92% and 0%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Valero Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 4.29% lower within the past month. At present, Valero Energy boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Valero Energy is currently exchanging hands at a Forward P/E ratio of 15.4. Its industry sports an average Forward P/E of 12.46, so one might conclude that Valero Energy is trading at a premium comparatively.
Meanwhile, VLO's PEG ratio is currently 1.1. 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. The Oil and Gas - Refining and Marketing industry had an average PEG ratio of 1.18 as trading concluded yesterday.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 186, this industry ranks in the bottom 25% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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