The latest trading session saw Valero Energy (VLO) ending at $133.74, denoting a +1.26% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw an increase of 0.87%.
Coming into today, shares of the oil refiner had gained 2.86% in the past month. In that same time, the Oils-Energy sector gained 2.26%, while the S&P 500 lost 5.59%.
Analysts and investors alike will be keeping a close eye on the performance of Valero Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on April 24, 2025. The company is predicted to post an EPS of $1.16, indicating a 69.63% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $28.58 billion, down 10.01% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.74 per share and a revenue of $118.32 billion, indicating changes of -8.73% and -8.9%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.86% downward. Currently, Valero Energy is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Valero Energy is currently being traded at a Forward P/E ratio of 17.06. For comparison, its industry has an average Forward P/E of 16.97, which means Valero Energy is trading at a premium to the group.
Also, we should mention that VLO has a PEG ratio of 2.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 2.84 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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This article originally published on Zacks Investment Research (zacks.com).
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