Valero Energy (VLO) Shows Positive Movement in Recent Trading

In its latest trading session, Valero Energy (VLO) closed at $133.84, reflecting a gain of 1.37% from the previous trading day. This performance outstripped the broader market, with the S&P 500 seeing an increase of 1.08%, the Dow rising by 0.92%, and the Nasdaq up by 1.41%.

Over the past month, shares of the oil refiner have declined by 4.46%. Despite this drop, the stock has performed better than the Oils-Energy sector, which experienced a 2.69% decline, and outshined the S&P 500, which has fallen 8.26%.

Investors are eagerly awaiting the upcoming earnings report from Valero Energy, scheduled for April 24, 2025. Analysts forecast an earnings per share (EPS) of $0.83, indicating a significant 78.27% decrease from the same quarter last year. Additionally, the Zacks Consensus Estimate predicts total revenues of $28.56 billion, representing a 10.08% dip from the previous year.

For the entire year, analysts suggest expected earnings of $7.73 per share and revenues of $118.41 billion, which would mark reductions of 8.84% and 8.83% respectively from last year.

Additionally, changes in analyst estimates for Valero Energy have been recently noteworthy. Such revisions generally reflect current business conditions. Upward adjustments in these estimates typically indicate a favorable outlook from analysts regarding the company's operations and profit-generating capabilities.

Research shows that adjustments in estimates correlate with future stock price movements. The Zacks Rank system was designed to take these changes into account and provide actionable ratings. This system ranges from #1 (Strong Buy) to #5 (Strong Sell). Historically, #1 ranked stocks have delivered an average annual return of +25% since 1988. Currently, Valero Energy holds a Zacks Rank of #3 (Hold), following a 2.32% downward adjustment in the consensus EPS estimate over the last month.

Looking at its valuation, Valero Energy is trading at a Forward P/E ratio of 17.07, which is slightly above the industry's average Forward P/E of 16.89.

Moreover, Valero Energy has a PEG ratio of 2.85. This ratio is similar to the standard P/E ratio, as it accounts for the company’s expected earnings growth rate. The average PEG ratio in the Oil and Gas - Refining and Marketing sector is also 2.85 as of the most recent closing.

The Oil and Gas - Refining and Marketing industry belongs to the Oils-Energy sector and currently has a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries examined.

The Zacks Industry Rank evaluates the strength of various industry groups based on the average Zacks Rank of individual stocks in those groups. Historical data indicates that industries in the top half tend to outperform those in the bottom half by a factor of 2 to 1.

To monitor Valero Energy in upcoming trading sessions, investors can track the stock's performance on various financial platforms.

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