Valero(US:VLO) ZACKS·2025-12-17 00:01Core Viewpoint - Valero Energy is experiencing a decline in stock performance, with a significant upcoming earnings report expected to show substantial year-over-year growth in earnings per share, despite a projected decline in revenue [2][3]. Group 1: Stock Performance - Valero Energy's stock closed at $162.82, reflecting a -3.03% change from the previous day's closing price, underperforming compared to the S&P 500's loss of 0.24% [1]. - Over the past month, Valero's shares have decreased by 5.89%, which is worse than the Oils-Energy sector's loss of 1.72% and the S&P 500's gain of 1.31% [1]. Group 2: Upcoming Earnings Report - Valero Energy is set to announce its earnings on January 29, 2026, with an expected earnings per share of $3.22, indicating a year-over-year growth of 403.13% [2]. - The consensus estimate for revenue is projected at $29.13 billion, representing a 5.28% decline compared to the same quarter last year [2]. Group 3: Annual Forecasts - For the entire year, the Zacks Consensus Estimates predict earnings of $10.07 per share and revenue of $121.45 billion, reflecting changes of +18.75% and -6.49%, respectively, from the previous year [3]. - Recent analyst estimate revisions suggest a positive outlook for Valero Energy's business and profitability [3][4]. Group 4: Valuation Metrics - Valero Energy currently has a Forward P/E ratio of 16.67, which is higher than the industry average of 14.05, indicating that it is trading at a premium [6]. - The company has a PEG ratio of 1.19, aligning with the industry average, which suggests that the stock's expected earnings growth rate is factored into its valuation [7]. Group 5: Industry Ranking - The Oil and Gas - Refining and Marketing industry, which includes Valero Energy, holds a Zacks Industry Rank of 85, placing it in the top 35% of over 250 industries [7][8]. - The Zacks Industry Rank indicates that the top-rated industries tend to outperform the lower-rated ones by a factor of 2 to 1 [8].