Why the Market Dipped But Valero Energy (VLO) Gained Today

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Why the Market Dipped But Valero Energy (VLO) Gained Today

In the latest close session, Valero Energy (VLO) was up +1.18% at $313.31. This change outpaced the S&P 500's 0.19% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.

The stock of oil refiner has risen by 31.04% in the past month, leading the Oils-Energy sector's gain of 3.6% and the S&P 500's gain of 0.55%.

Analysts and investors alike will be keeping a close eye on the performance of Valero Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2026. The company is forecasted to report an EPS of $9.81, showcasing a 330.26% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $35.95 billion, indicating a 20.26% growth compared to the corresponding quarter of the prior year.

VLO's full-year Zacks Consensus Estimates are calling for earnings of $32.61 per share and revenue of $135.14 billion. These results would represent year-over-year changes of +207.35% and +10.15%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Valero Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 shifted 18.79% upward. Valero Energy presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Valero Energy is holding a Forward P/E ratio of 9.5. This denotes no noticeable deviation relative to the industry average Forward P/E of 9.5.

It is also worth noting that VLO currently has a PEG ratio of 0.37. 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 0.37.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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This article originally published on Zacks Investment Research (zacks.com).

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