Valero Energy (VLO – Free Report) closed the latest trading day at $124.26, indicating a +0.9% change from the previous session’s end. The stock fell short of the S&P 500, which registered a gain of 1.26% for the day. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.77%.
The oil refiner’s shares have seen a decrease of 7.44% over the last month, not keeping up with the Oils-Energy sector’s loss of 5.1% and the S&P 500’s loss of 2.82%.
The upcoming earnings release of Valero Energy will be of great interest to investors. The company’s earnings report is expected on January 30, 2025. On that day, Valero Energy is projected to report earnings of $0.40 per share, which would represent a year-over-year decline of 88.73%. Alongside, our most recent consensus estimate is anticipating revenue of $30.48 billion, indicating a 13.92% downward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Valero Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 10.03% lower within the past month. At present, Valero Energy boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Valero Energy is presently being traded at a Forward P/E ratio of 14.2. For comparison, its industry has an average Forward P/E of 14.58, which means Valero Energy is trading at a discount to the group.
Investors should also note that VLO has a PEG ratio of 2.37 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. By the end of yesterday’s trading, the Oil and Gas – Refining and Marketing industry had an average PEG ratio of 2.37.
The Oil and Gas – Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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