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Valero Energy (VLO) Outpaces Stock Market Gains: What You Should Know

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Valero Energy (VLO - Free Report) closed at $82.09 in the latest trading session, marking a +0.44% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.33%.

Heading into today, shares of the oil refiner had gained 1.16% over the past month, lagging the Oils-Energy sector's gain of 4.91% and the S&P 500's gain of 1.74% in that time.

Investors will be hoping for strength from VLO as it approaches its next earnings release, which is expected to be July 29, 2021. On that day, VLO is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 165.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.23 billion, up 113.79% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.36 per share and revenue of $92.57 billion, which would represent changes of +143.59% and +42.62%, respectively, from the prior year.

Any recent changes to analyst estimates for VLO should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 10.42% lower within the past month. VLO is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note VLO's current valuation metrics, including its Forward P/E ratio of 60.02. This represents a premium compared to its industry's average Forward P/E of 31.71.

It is also worth noting that VLO currently has a PEG ratio of 10.94. 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 industry currently had an average PEG ratio of 3.09 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow VLO in the coming trading sessions, be sure to utilize Zacks.com.


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