The Majority of Analysts Are Still Downbeat on Valero Energy Corporation (NYSE:VLO)

Valero Energy Corporation (NYSE: VLO) was one of the biggest movers in the recent trading session. So what do we make of this stock that is clearly one of the hottest on the market now? The VLO stock is trading at $92.26 from a close of $95.40 on 01/15/20. The day’s price range saw the stock hit a low of $91.66, while the highest price level was $94.85 during the intraday trading.

Is the VLO stock going to continue the plunge or will it steady in coming sessions to climb above its 5-day high price of $98.03. Valero Energy Corporation (NYSE: VLO) has a 52-week price range of between $69.44 and $101.99. Notably, the reduced performance in the current session comes on the back of condensed market activity for the stock, as its daily trading volume to 3955296, compared to its 3-months daily average volume of 3.07 million. In comparison, the average volume for the last 50 days stands at 2,992,522.

What about the stock’s price forecasts? VLO had 21 analysts who offered their 12-month price predictions for the Valero Energy Corporation shares. The group has given the stock a consensus price target of $109.37, with the lowest forecast being put at $91.00. The highest estimate by the 21 analysts is $124.00. The median price target estimate of $110.00 for the stock represents a 16.13% jump in value from the previous price of $92.26. Looking at the 52-week price ranges, the stock’s current price level is 32.86% from its 52-week high price and -9.54% down from its 52-week low in the same period.

Valero Energy Corporation shares have plunged -0.89% over the past week, but its 1-month performance is in the red at -1.65%. Its performance in the current quarter is up 3.14%, while that figure shoots to 10.84% over the past half-year period. Further, we see that the stock’s 12-month charts show that it has gained by 17.13%, with the year-to-date prices down by -1.48%.

The company has a market cap of 38.01 billion and a return on assets (ROA) of 4.50%. In gauging how profitable company analysts and investors look at the respective company’s ROA, with returns above 5% generally regarded as good. Also important is the company’s return on equity (ROE), with VLO’s at 10.80% indicating that the management is able to generate impressive income with whatever equity at their disposal. If you put your money on this stock, then a forecast ROI is at 11.90%.

But what do Wall Street analysts tracking this stock recommend, given that it has 412.00 million shares outstanding? 21 analysts polled have a consensus recommendation rating of 4.67, indicating that VLO is a Buy stock at the moment. This mean rating was at 4.64 a month ago. Barclays called it a Overweight stock on January 14, 2020, while Goldman rated it a Buy in its note released on June 06, 2019. Of the 21 analysts, 3 analysts rate the VLO stock as Overweight, while 3 of them rated it as a Hold. 15 analysts rate Valero Energy Corporation as a Buy, while 0 suggested its Underweight. Only 0 analyst advised investors to sell.

Let’s glean at the company’s earnings forecasts for the current quarter and annual growth estimate for the next 5-year period. The analyst forecasts for this stock’s earnings per share (EPS) for the current quarter (Dec 2019) ranged from a low of $1.5 per share to $2.5 per share. The average estimate by the 18 analysts for the VLO shares was $1.72 a share, while the company’s last-quarter results returned an EPS of $1.07. Looking at the current EPS trends, seven days ago, VLO had its Dec 2019 estimates at $1.69 per share while the stock’s EPS was forecasted at the $1.75, a month ago. However, the company’s EPS growth for this quarter stands at -18.90%, while that growth rate for the next fiscal quarter is forecasted at 361.80%. The annual earnings per share growth for the next five years is estimated to be 3.96%, which compares to the -8.67% recorded in the past five-year period.

Let’s briefly check out revenue growth estimates for the company, which is put at -10.30% in the current quarter. However, the next quarter should see net revenue growth of over 12.60%, with analysts forecasting the company’s 12-month growth estimates at 8.10%. 5 analysts have forecast that Valero Energy Corporation will see its revenue growth net between $24.44 billion and $26.92 billion for the current quarter. The next quarter should see revenue returns of between $15.39 billion and $28.26 billion.The average revenue for the quarter is expected at $25.78 billion, while for the next quarter, it jumps to $24.22 billion. Sales growth for the year are estimated at 8.10%.