Valero Energy (VLO) Beats Stock Market Upswing: What Investors Need to Know

In the latest trading session, Valero Energy (VLO) closed at $135.80, marking a +1.53% move from the previous day. The stock’s change was more than the S&P 500’s daily gain of 0.03%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%.

Prior to today’s trading, shares of the oil refiner had lost 9.76% over the past month. This has lagged the Oils-Energy sector’s loss of 3.35% and the S&P 500’s gain of 1.54% in that time.

Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company plans to announce its earnings on October 24, 2024. The company is expected to report EPS of $2.65, down 64.62% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $33.88 billion, indicating a 11.77% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.30 per share and a revenue of $133.64 billion, representing changes of -50.6% and -7.69%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates 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 company’s business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Valero Energy is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Valero Energy is holding a Forward P/E ratio of 10.88. This valuation marks a discount compared to its industry’s average Forward P/E of 13.76.

One should further note that VLO currently holds a PEG ratio of 2.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. By the end of yesterday’s trading, the Oil and Gas – Refining and Marketing industry had an average PEG ratio of 2.72.

The Oil and Gas – Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.