Is It Worth Investing in Valero Energy (VLO) Based on Wall Street's Bullish Views?

Analyst Recommendations and Valero Energy - Valero Energy has an average brokerage recommendation (ABR) of 1.71, which approximates between Strong Buy and Buy, based on 17 brokerage firm recommendations [1] - Out of the 17 recommendations, 12 are Strong Buy, representing 70.6% of all recommendations [1] - The ABR suggests buying Valero Energy, but relying solely on brokerage recommendations may not be ideal due to their inherent positive bias [2] Zacks Rank vs ABR - The Zacks Rank is a proprietary stock rating tool that classifies stocks into five groups, ranging from Strong Buy to Strong Sell, and is a reliable indicator of near-term price performance [3] - Unlike the ABR, which is based on brokerage recommendations, the Zacks Rank is driven by earnings estimate revisions and is displayed in whole numbers [4] - The Zacks Rank is more timely and reflective of changing business trends, as it quickly incorporates revisions in earnings estimates [5] Valero Energy's Earnings Prospects - The Zacks Consensus Estimate for Valero Energy's current year earnings has increased by 13.5% over the past month to $17.14 [6] - Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement in revising EPS estimates higher, could drive the stock's near-term performance [6] - Valero Energy currently holds a Zacks Rank 2 (Buy), which aligns with its Buy-equivalent ABR, making it a potentially attractive investment [6]