Valero Energy (VLO) closed at $444.06 in the latest trading session, marking a -3.42% move from the prior day. This change lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.
Shares of the oil refiner witnessed a gain of 14.01% over the previous month, beating the performance of the Oils-Energy sector with its gain of 5.67%, and the S&P 500's gain of 1.41%.
The investment community will be paying close attention to the earnings performance of Valero Energy in its upcoming release. The company is slated to reveal its earnings on October 22, 2026. The company is forecasted to report an EPS of $21.23, showcasing a 480.05% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $38.8 billion, indicating a 20.62% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $51.77 per share and a revenue of $152.87 billion, representing changes of +387.94% and +24.6%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Valero Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.57% higher. Currently, Valero Energy is carrying a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Valero Energy has a Forward P/E ratio of 8.88 right now. This expresses a premium compared to the average Forward P/E of 8.76 of its industry.
It's also important to note that VLO currently trades at a PEG ratio of 0.29. 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 average PEG ratio for the Oil and Gas - Refining and Marketing industry stood at 0.29 at the close of the market yesterday.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Valero Energy Corporation (VLO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).