This story originally appeared on Zacks
Valero Energy (VLO) closed at $78.20 in the last trading session, posting a move of -0.39% from the day before. This change was narrower than the S&P 500’s daily loss of 1.94%. Meanwhile, the Dow Jones lost 1.07%, and the tech-heavy Nasdaq lost 0.39%.
Heading into the day, the oil refiner’s shares are up 9.6% over the past month, outpacing the oil and energy sector’s 5.65% gain and the S&P 500’s 5.72% gain in that time.
Investors are hoping for some strength from Valero Energy as it approaches its next earnings release, which is expected on January 27, 2022. The company is expected to report earnings per share of $1.41, up 233.02% from the previous quarter. Meanwhile, our latest consensus estimate calls for revenue of $28.78 billion, up 73.34% from the prior year quarter.
Any recent changes to analyst estimates for Valero Energy should also be noted by investors. Recent reviews tend to reflect the latest near-term business trends. As a result, we can interpret positive rating reviews as a good sign of the company’s business outlook.
Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. To take advantage of this, we have developed Zacks Rank, a proprietary model that takes these discretionary changes into account and provides an actionable ranking system.
The Zacks Rank system, which ranges from #1 (strong buy) to #5 (strong sell), has an impressive externally audited track record of outperformance, with the #1 stock having achieved a +25% average annual return since 1988. The Zacks Rank has declined Zacks Consensus estimated EPS by 4.77% over the past month. Valero Energy is currently ranked #3 (Hold) by Zacks.
When looking at the valuation, Valero Energy currently has a forward P/E ratio of 12.64. This rating represents a discount compared to the industry’s forward P/E average of 16.01.
We can also see that VLO currently has a PEG ratio of 2.11. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Oil and Gas Refining and Marketing stocks have, on average, a price-to-commission ratio of 0.61 based on yesterday’s closing prices.
Oil and Gas – The refining and marketing industry is part of the oil and energy sector. The industry currently has a Zacks Industry Rating of 63, placing it in the top 25% of all 250+ industries.
Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to keep track of all these stock movement metrics and more in upcoming trading sessions.
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