Valero Energy Outpaces Broader Market Gains

Valero Energy closed at $370.69 on 3 September, gaining 1.26% on the day. That rise led the S&P 500, which added 1.06%, while the Dow rose 1.18% and the Nasdaq added 1.4%. Over the past month, shares of the oil refiner rose 21.07%, outpacing the Oils-Energy sector gain of 4.7% and the S&P 500 advance of 2.46%.

For the upcoming quarterly report, Zacks consensus estimates project earnings per share of $15, an increase of 309.84% from the prior-year period. Quarterly revenue is projected at $36.53 billion, up 13.55% year over year. The consensus estimate for quarterly EPS rose 3.85% over the past month.

For the full year, Zacks estimates call for earnings of $40.70 per share, up 283.6%, and revenue of $146.63 billion, up 19.52%. Valero Energy holds a Zacks Rank of #1 (Strong Buy). Zacks reports that stocks with this rank have averaged an annual return of 25% since 1988.

Valero Energy traded at a forward price-to-earnings ratio of 8.99, matching the average for its industry. Its PEG ratio stood at 0.42, compared with an average of 0.34 for the refining and marketing industry. Zacks ranks that industry at number 20, which places it in the top 9% of more than 250 tracked groups.