Why Valero Energy (VLO) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, aiding in stock selection based on value, growth, and momentum [3][4][5][6][7] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score emphasizes identifying undervalued stocks using financial ratios [4] - Growth Score assesses a company's potential for long-term growth based on earnings and sales projections [5] - Momentum Score tracks price trends to identify favorable investment opportunities [6] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.93% since 1988 [8] - A large number of stocks are rated, with over 800 top-rated options available, making it essential to use Style Scores for better selection [9] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still pose risks due to downward earnings forecasts [11] Company Spotlight: 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 [12] - Currently rated 3 (Hold) with a VGM Score of A, Valero has a Momentum Style Score of A and has seen a 10.3% increase in shares over the past four weeks [12][13] - Recent upward revisions in earnings estimates for fiscal 2025 indicate strong potential, with the Zacks Consensus Estimate rising by $1.23 to $9.21 per share [13]