Valero Energy Corporation (VLO) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Valero Energy has shown significant stock performance, with a 22.6% increase over the past month and a 41.1% rise since the beginning of the year, outperforming both the Zacks Oils-Energy sector and the Zacks Oil and Gas - Refining and Marketing industry [1] Group 1: Stock Performance - Valero Energy shares reached a new 52-week high of $184.79 [1] - The stock has outperformed the Zacks Oils-Energy sector, which saw a 12% increase, and the Zacks Oil and Gas - Refining and Marketing industry, which had a 15.6% return [1] Group 2: Earnings Performance - Valero Energy has consistently exceeded earnings expectations, reporting an EPS of $3.55 against a consensus estimate of $2.95 in its last earnings report [2] - For the current fiscal year, the company is projected to earn $17.14 per share on revenues of $133.97 billion, reflecting a -31.16% change in EPS and a -7.46% change in revenues [2] - The next fiscal year is expected to see earnings of $13.43 per share on $131.2 billion in revenues, indicating a year-over-year decline of -21.69% in EPS and -2.06% in revenues [2] Group 3: Valuation Metrics - Valero Energy's current trading multiple is 10.7X the current fiscal year EPS estimates, below the peer industry average of 13.2X [4] - On a trailing cash flow basis, the stock trades at 5.3X compared to the peer group's average of 4.5X [4] - The company has a PEG ratio of 1.78, which does not place it among the top value stocks [4] Group 4: Zacks Rank and Style Scores - Valero Energy holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [5] - The company has a Value Score of A, a Growth Score of C, and a Momentum Score of A, resulting in a combined VGM Score of A [3][5] - The stock meets the criteria for selection based on Zacks Rank and Style Scores, suggesting potential for further price appreciation [5]