Back to top

Image: Bigstock

Valero Energy (VLO) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Valero Energy (VLO - Free Report) closed at $105.53, marking a -1.76% move from the previous day. This change lagged the S&P 500's daily loss of 1.71%. Elsewhere, the Dow lost 1.7%, while the tech-heavy Nasdaq lost 0.18%.

Coming into today, shares of the oil refiner had lost 12.03% in the past month. In that same time, the Oils-Energy sector lost 2.7%, while the S&P 500 lost 8.68%.

Valero Energy will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. On that day, Valero Energy is projected to report earnings of $8.60 per share, which would represent year-over-year growth of 604.92%. Meanwhile, our latest consensus estimate is calling for revenue of $42.12 billion, up 42.67% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $27.64 per share and revenue of $173.97 billion. These totals would mark changes of +883.63% and +52.64%, respectively, from last year.

Any recent changes to analyst estimates for Valero Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 5.34% higher. Valero Energy is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Valero Energy's current valuation metrics, including its Forward P/E ratio of 3.89. This represents a discount compared to its industry's average Forward P/E of 5.38.

Meanwhile, VLO's PEG ratio is currently 0.65. 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. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.44 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 7, which puts it in the top 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Valero Energy Corporation (VLO) - free report >>

Published in