Valero Energy (VLO) closed at $133.29 in the latest trading session, marking a +0.73% move from the prior day. The stock lagged the S&P 500's daily gain of 0.82%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 1.77%.
The oil refiner's shares have seen a decrease of 3.43% over the last month, not keeping up with the Oils-Energy sector's loss of 2.1% and the S&P 500's gain of 0.8%.
Investors will be eagerly watching for the performance of Valero Energy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 30, 2025. The company is expected to report EPS of $0.72, down 79.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $31.07 billion, down 12.27% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.89 per share and a revenue of $130.19 billion, representing changes of -64.3% and -10.07%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Valero Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.31% decrease. Valero Energy is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Valero Energy is at present trading with a Forward P/E ratio of 14.89. This signifies a discount in comparison to the average Forward P/E of 15.81 for its industry.
Meanwhile, VLO's PEG ratio is currently 2.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Refining and Marketing industry had an average PEG ratio of 2.48 as trading concluded yesterday.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 204, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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