Valero Energy (VLO) Stock Falls Amid Market Uptick: What Investors Need to Know

Valero Energy (VLO) closed at $134.69 in the latest trading session, marking a -1.66% move from the prior day. This move lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 0.52%.

Shares of the oil refiner have appreciated by 6.05% over the course of the past month, outperforming the Oils-Energy sector's gain of 5.34%, and the S&P 500's gain of 5.95%.

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Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company plans to announce its earnings on July 24, 2025. The company's earnings per share (EPS) are projected to be $1.77, reflecting a 34.69% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $27.83 billion, indicating a 19.3% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.19 per share and revenue of $115.9 billion, indicating changes of -27% and -10.76%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.79% upward. Valero Energy is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Valero Energy has a Forward P/E ratio of 22.12 right now. This indicates a premium in contrast to its industry's Forward P/E of 17.86.

Investors should also note that VLO has a PEG ratio of 2.39 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 1.58.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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