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Valero Energy (VLO) Stock Sinks As Market Gains: Here's Why

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Valero Energy (VLO - Free Report) closed the most recent trading day at $125.96, moving -0.28% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.88%. On the other hand, the Dow registered a gain of 0.54%, and the technology-centric Nasdaq increased by 1.35%.

Coming into today, shares of the oil refiner had lost 4.7% in the past month. In that same time, the Oils-Energy sector lost 3.78%, while the S&P 500 gained 0.64%.

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 25, 2024. The company's upcoming EPS is projected at $3.09, signifying a 63.43% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $37.11 billion, indicating a 11.09% decrease compared to the same quarter of the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.59% higher. Valero Energy is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 8.54. This denotes a discount relative to the industry's average Forward P/E of 10.08.

Meanwhile, VLO's PEG ratio is currently 1.42. 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 1.53 as trading concluded yesterday.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 43% of over 250 industries.

The Zacks Industry Rank is ordered 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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