Here's Why Valero Energy (VLO) is a Strong Momentum Stock

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score assesses a company's future earnings and financial health [4] - Momentum Score identifies trends in stock prices and earnings estimates [5] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [6] Zacks Rank and Style Scores Interaction - The Zacks Rank uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential to utilize Style Scores for better stock selection [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: Valero Energy - Valero Energy Corporation is the largest independent refiner and marketer of petroleum products in the U.S., with a refining capacity of 3.1 million barrels per day [11] - Valero is rated 2 (Buy) on the Zacks Rank and has a VGM Score of A [11] - The company has shown positive momentum, with a 1.3% increase in shares over the past four weeks and upward revisions in earnings estimates [12] - The Zacks Consensus Estimate for Valero's earnings has increased by $1.73 to $8.83 per share, with an average earnings surprise of +138.8% [12]