Company Performance - Valero Energy (VLO) closed at $147.92, reflecting a +0.87% increase from the previous day, outperforming the S&P 500's daily gain of 0.55% [1] - Over the past month, Valero's shares experienced a loss of 2.12%, which is better than the Oils-Energy sector's loss of 11.53% but underperformed the S&P 500's gain of 4.28% [1] - The upcoming earnings report on July 25, 2024, is projected to show earnings of $4.25 per share, a year-over-year decline of 21.3%, with expected revenue of $34.82 billion, a 0.9% increase compared to the previous year [1] Earnings Estimates - For the full year, the Zacks Consensus Estimates project earnings of $15.34 per share and revenue of $135.3 billion, representing declines of -38.39% and -6.54% from the prior year, respectively [2] - Recent shifts in analyst projections are crucial for investors, as positive revisions indicate confidence in the company's performance and profit potential [2] Valuation Metrics - Valero Energy currently has a Zacks Rank of 3 (Hold), with a Forward P/E ratio of 9.56, indicating a discount compared to the industry's Forward P/E of 13.08 [3] - The company has a PEG ratio of 1.59, which is lower than the average PEG ratio of 1.71 for the Oil and Gas - Refining and Marketing industry [3] Industry Context - The Oil and Gas - Refining and Marketing industry is ranked 198 in the Zacks Industry Rank, placing it in the bottom 22% of over 250 industries [4] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape within the sector [4]

Valero Energy (VLO) closed the most recent trading day at $150.73, moving +0.35% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.31%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, lost 1.09%.Coming into today, shares of the oil refiner had lost 7.52% in the past month. In that same time, the Oils-Energy sector lost 4.31%, while the S&P 500 gained 2.73%.Analysts and investors alike will be keeping a close eye on the performance ...

In the latest trading session, Valero Energy (VLO) closed at $151.11, marking a +0.69% move from the previous day. This change lagged the S&P 500's 0.77% gain on the day. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.95%.The oil refiner's stock has dropped by 9.63% in the past month, falling short of the Oils-Energy sector's loss of 7.24% and the S&P 500's gain of 3.71%.The upcoming earnings release of Valero Energy will be of great interest to investors. The compa ...

Overview - Valero has provided a total return of slightly over 21% since August of the previous year, remaining on par with the S&P 500 [2] - The company is revisiting its valuation and outlook, aiming for a more conservative estimate of fair value [2] Company Profile - Valero is an energy company that refines and sells petroleum and petrochemical products globally, operating in three main segments: Refining, Renewable Diesel, and Ethanol [4] - The company is strategically positioned to benefit from the Biofuels market, which is expected to grow at a CAGR of 5.2% through 2029 [4][5] Dividend Analysis - The latest quarterly dividend is $1.07 per share, resulting in a current dividend yield of 2.7% [6] - The dividend payout ratio is low at around 20%, significantly below the sector median of approximately 40% [6] - The dividend has grown at a CAGR of 4.2% over the past five years and 15.97% over the past ten years [6][7] - A back test shows that an initial investment of $10,000 in 2015, with monthly contributions and reinvested dividends, could yield an annual dividend of $4,873 by 2023 [7] Valuation Insights - Valero currently trades at a price-to-earnings ratio of 7.63x, below the sector median of 10.38x and its own five-year average of 8.95x [8] - The average price target from Wall Street analysts is around $180.95 per share, indicating a potential upside of approximately 17% from current levels [9] - A dividend discount calculation estimates a fair value of $171.20 per share, representing an 11.5% upside based on a conservative growth rate of 7.5% [20] Financial Performance - In Q1, Valero reported a revenue decrease of 12.8% year-over-year, totaling $31.76 billion, while earnings per share beat expectations at $3.82 [22] - The refining segment saw a significant drop in operating income from $4.1 billion to $1.7 billion due to lower refining volumes and maintenance costs [22] - The Renewable Diesel segment's net operating income decreased to $190 million, despite an increase in sales volume to 3.7 million gallons per day [22] - The Ethanol segment's operating income was $10 million, with production averaging 4.5 million gallons per day [23] - Cash from operations and free cash flow have improved above pre-pandemic levels, with liquidity strong at $4.9 billion [23] Debt and Cash Flow - Valero's long-term debt totals approximately $10 billion, which is within a normal range of $8 billion to $12 billion [27] - Free cash flow is currently at $7 billion, slightly down from $9.6 billion at the end of 2023 [27] Conclusion - Valero is positioned as a strong dividend compounder with rising free cash flow and a healthy payout ratio, supporting potential dividend growth [32] - Despite recent decreases in business segments, the company remains sensitive to crude oil price fluctuations, which can impact profitability [32]

The most recent trading session ended with Valero Energy (VLO) standing at $154.59, reflecting a +0.1% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.26%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 0.35%.Shares of the oil refiner witnessed a loss of 1.09% over the previous month, beating the performance of the Oils-Energy sector with its loss of 3.91% and underperforming the S&P 500's gain of 3.25%.The investm ...

Valero Energy (VLO) ended the recent trading session at $155.38, demonstrating a +0.94% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.15%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.17%.Shares of the oil refiner have depreciated by 2.69% over the course of the past month, underperforming the Oils-Energy sector's loss of 1.23% and the S&P 500's gain of 3.2%.Analysts and investors alike will be keepi ...

Valero Energy (VLO) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this oil refiner have returned -1.3% over the past month versus the Zacks S&P 500 composite's +7.1% change. The Zacks Oil and Gas - Refining and Marketing industry, to which Valero Energy belongs, has lost 1.7% over this period. Now the key question is: Where could the stock be headed in the near term?Althoug ...

ValeroEnergy Corporation (VLO) recently reported better-than-expected first-quarter 2024 earnings. The leading oil refiner’s earnings per share were $3.82, while revenues came in at $31.8 billion.Price Performance SolidSince the earnings announcement on Apr 25, the stock declined almost 5%, unrelated to the company’s fundamentals. However, Valero has proven to be incredibly rewarding since the beginning of 2024, gaining 23.1% year to date, surpassing the 8.1% rise of the composite stocks belonging to the Za ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Valero Energy (VLO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Valero Energy currently has a ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on ke ...