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

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In the latest trading session, Valero Energy (VLO - Free Report) closed at $101.27, marking a -0.27% move from the previous day. This change lagged the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.

Prior to today's trading, shares of the oil refiner had gained 20.61% over the past month. This has outpaced the Oils-Energy sector's gain of 7.96% and the S&P 500's gain of 3.75% in that time.

Wall Street will be looking for positivity from Valero Energy as it approaches its next earnings report date. This is expected to be April 26, 2022. On that day, Valero Energy is projected to report earnings of $1.79 per share, which would represent year-over-year growth of 203.47%. Our most recent consensus estimate is calling for quarterly revenue of $29.59 billion, up 42.22% from the year-ago period.

VLO's full-year Zacks Consensus Estimates are calling for earnings of $8.29 per share and revenue of $133.45 billion. These results would represent year-over-year changes of +195.02% and +17.08%, respectively.

It is also important to note the recent changes to analyst estimates for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 13.09% higher within the past month. Valero Energy currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Valero Energy is holding a Forward P/E ratio of 12.25. This valuation marks a discount compared to its industry's average Forward P/E of 17.51.

Meanwhile, VLO's PEG ratio is currently 2.04. 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. VLO's industry had an average PEG ratio of 1.25 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 64, which puts it in the top 26% 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.

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


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