VLO

Q3 earnings season shows strong momentum with Valero Energy, RTX, and Interactive Brokers all posting record-breaking results. VLO reported adjusted EPS of $23.90 (beating consensus by 18%), RTX achieved a record $340 billion backlog with 27% EPS beat, and IBKR reached record customer accounts of 5.58 million with a 70% dividend increase. All three companies maintain favorable Zacks Ranks supporting near-term share performance.

Valero Energy (VLO) and Phillips 66 (PSX) are both strong refining plays benefiting from constrained global refining capacity and strong margins. VLO has surged 149.2% over the past year versus PSX's 110.8%, aided by its access to cheaper heavy crude.

However, PSX trades at a premium valuation (12.52x EV/EBITDA vs VLO's 9.00x) due to its diversified business model including midstream operations and focused debt reduction strategy. Both stocks currently hold Zacks Rank #1 (Strong Buy) ratings.

Valero Energy (VLO) has been identified as a #1 Strong Buy on the Zacks Rank with a VGM Score of A. The company is forecasting year-over-year earnings growth of 395.3% for the current fiscal year, with eight analysts revising earnings estimates upward in the last 60 days. The Zacks Consensus Estimate has increased to $52.55 per share for fiscal 2026, and the company boasts an average earnings surprise of +23.9%.

Valero Energy (VLO) reported exceptional third-quarter 2026 results with adjusted EPS surging 553% to $23.90 and revenues jumping 43.3% to $46.10 billion. The company benefited from substantially stronger refining margins, particularly in gasoline and distillate products, with refining margin per barrel reaching $39.24. Renewable diesel and ethanol segments also showed improved profitability, while operating cash flow hit $6.93 billion.

Global oil markets surged following drone attacks on Saudi and Russian infrastructure, pushing WTI to $99/bbl and Brent to $112/bbl (5-month high). Stock futures declined sharply with the Dow down 285 points, S&P 500 down 69 points, and Nasdaq down 479 points, while bond yields fell across the board. Initial jobless claims remained historically low at 194K. Q3 earnings showed mixed results: Procter & Gamble and Lockheed Martin beat expectations, Spotify missed earnings but showed strong subscriber growth, and Valero Energy posted strong refining margins.

Middle Eastern tensions from drone attacks on Saudi and Russian infrastructure and tanker attacks in the Strait of Hormuz drove oil prices up 2% to five-month highs, sending stock futures lower. Jobless claims remained historically low at 194K. Q3 earnings showed mixed results: Procter & Gamble and Lockheed Martin beat estimates while Spotify missed, though all three stocks traded higher. Valero Energy surged on strong refining market conditions.

Valero Energy reported Q3 2026 earnings of $23.9 per share, beating consensus estimates of $21.28 and delivering a 12.31% earnings surprise. The company also exceeded revenue expectations with $46.1 billion, up 23.29% from estimates. With a Zacks Rank #1 (Strong Buy) rating and the Oil and Gas - Refining and Marketing industry in the top 2% of performance, Valero shares have gained 168.3% year-to-date.

Valero Energy (VLO) demonstrates strong momentum characteristics with a Momentum Style Score of A and Zacks Rank #1 (Strong Buy). The company has outperformed its industry and broader market indices over multiple timeframes, with shares up 45.01% quarterly and 174.86% annually. Earnings estimates have been revised upward significantly, with 8 upward revisions and none downward over the past two months, boosting consensus estimates from $40.62 to $52.55.

Valero Energy is poised to report Q3 results with earnings expected to surge over 480% year-over-year to $21.28 per share, driven by elevated refining margins from global supply disruptions. Analysts have aggressively raised FY27 EPS estimates by 63% over the past 60 days, while VLO trades at an attractive 8X forward earnings valuation despite a 170% year-to-date gain.

The U.S. economy showed mixed signals with rising inflation (3.7% headline, 2.6% core) and geopolitical tensions pressuring markets. The Nasdaq fell 4.1% while the Dow gained 0.29%, reflecting investor preference for blue-chip stocks over tech. Despite market uncertainty, Zacks' research-driven rating systems demonstrated strong performance, with Valero Energy gaining 29.7% post-upgrade, Palantir surging 40.5% over 12 weeks, and the Zacks Rank #1 portfolio outperforming the S&P 500 by 3.9 percentage points year-to-date.

Zacks highlights three stocks with Rank #1 (Strong Buy) ratings as of October 19th: Valero Energy (VLO), an energy company with 27.5% earnings estimate increase; Sendas Distribuidora (ASAIY), a retail/wholesale distributor with 3.2% earnings growth; and EOG Resources (EOG), an oil and gas exploration company with 7.8% earnings estimate increase. All three stocks feature favorable PEG ratios and strong growth scores.

Valero Energy (VLO) is set to report Q3 2026 earnings on Oct. 22 with expected EPS of $21.23, a 480% surge year-over-year. Strong refining margins are anticipated due to Middle East supply disruptions, Russian refinery attacks, and low global inventories.

However, elevated crude oil prices averaging $80-97 per barrel could pressure results. VLO trades at a premium 9.4X EV/EBITDA valuation despite a 190% stock rally.

Zacks highlights three Rank #1 stocks with strong growth potential: ATI Inc., a specialty materials company with a PEG ratio of 1.14; KE Holdings Inc., a Chinese housing services company with a PEG ratio of 0.49 and 22.5% earnings estimate increase; and Valero Energy Corporation, a transportation fuels company with a PEG ratio of 0.29 and 27.5% earnings estimate increase.

Valero Energy (VLO) closed down 3.42% but maintains a Zacks Rank #1 Strong Buy rating. The oil refiner is expected to report earnings on October 22, 2026, with forecasted EPS of $21.23 (up 480% YoY) and revenue of $38.8 billion (up 20.62% YoY). The stock has gained 14.01% over the past month, outperforming the S&P 500, and trades at a Forward P/E of 8.88 with a PEG ratio of 0.29.

The article explains DuPont analysis as a method to break down Return on Equity (ROE) into profit margin, asset turnover, and financial leverage. Using this analytical framework with specific screening parameters, five stocks emerged as strong candidates: Valero Energy, W.W. Grainger, Expeditors International, Par Pacific, and Casey's General Stores. All five stocks have strong Zacks Rank ratings and demonstrated positive earnings surprises over the past four quarters.

Amid elevated market volatility and high oil prices driven by Middle East tensions, investors are advised to increase allocation to low-beta stocks. Four energy companies—BP, PBF Energy, Valero Energy, and Marathon Petroleum—are highlighted as strong candidates due to their low volatility relative to the market and positive fundamentals including upcoming production projects, high refinery utilization, diverse crude sourcing, and strong cash flow generation.

Zacks highlights three Rank #1 stocks with strong growth potential: ATI Inc., a specialty materials company with a PEG ratio of 1.14; KE Holdings Inc., a Chinese housing services company with a PEG ratio of 0.49 and 22.5% earnings estimate increase; and Valero Energy Corporation, a transportation fuels company with a PEG ratio of 0.28 and 26.3% earnings estimate increase.

Valero Energy stock surged nearly 5% after Citigroup analyst Vikram Bagri raised his price target from $302 to $485 per share, though he maintained a neutral rating. Despite positive developments in refinery margins and competitive advantages, the analyst expresses caution given the stock's all-time high valuation and cyclical nature of the energy industry.

Three stocks with Zacks Rank #1 buy ratings are highlighted for investors: ATI Inc. (specialty materials), KE Holdings Inc. (Chinese housing services), and Valero Energy Corporation (transportation fuels). All three have shown positive earnings estimate revisions over the last 60 days and favorable PEG ratios relative to their industries.

Zacks Research Daily features analysis of 16 major stocks including JPMorgan Chase, ASML, and Chevron, plus two microcap stocks. JPMorgan benefits from strong earnings and diversified revenues; ASML faces balanced opportunities and risks from AI demand; Chevron shows strong production growth and cash flow. Additional coverage includes Pfizer, Valero Energy, and Constellation Energy, with mixed outlooks across sectors.