Valero(US:VLO) ZACKS·2024-06-10 23:06Company Performance - Valero Energy (VLO) closed at $154.59, with a slight increase of +0.1% from the previous trading day, underperforming the S&P 500 which gained 0.26% [1] - Over the past month, Valero's shares decreased by 1.09%, outperforming the Oils-Energy sector's loss of 3.91% but underperforming the S&P 500's gain of 3.25% [1] - The upcoming earnings report is projected to show earnings per share (EPS) of $5.15, a decrease of 4.63% year-over-year, with revenue expected at $34.38 billion, down 0.38% from the same quarter last year [1] Analyst Estimates - For the full year, earnings are projected at $17.82 per share and revenue at $135.11 billion, reflecting declines of -28.43% and -6.67% respectively from the prior year [2] - Recent changes in analyst estimates indicate short-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [2] Valuation Metrics - Valero Energy has a Forward P/E ratio of 8.67, which is lower than the industry average of 11.36, indicating it is trading at a discount [3] - The PEG ratio for Valero is currently 1.44, compared to the industry average PEG ratio of 1.75, suggesting a favorable valuation relative to projected earnings growth [3] Industry Context - The Oil and Gas - Refining and Marketing industry has a Zacks Industry Rank of 149, placing it in the bottom 41% of over 250 industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape within the sector [4]