Valero Energy Corporation (VLO), a leading international manufacturer and marketer of transportation fuels and petrochemical products, was established in 1980 and is headquartered in San Antonio, Texas. With a market cap of $41.6 billion, Valero plays a pivotal role in the energy sector, leveraging advanced refining technologies to deliver high-quality products and drive innovation in renewable energy solutions.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” Valero Energy is a strong contender in this category. With a solid history of financial performance and a focus on advancing energy solutions, Valero excels in the energy sector, particularly refining and renewable fuels. Its cutting-edge technologies and commitment to sustainability drive significant contributions to global energy markets, positioning the company as a leader in traditional and renewable energy innovation.
Valero Energy is currently trading 27.2% below its 52-week high of $184.79, reached on Apr. 5. Shares of Valero Energy gained marginally over the three months, underperforming the broader S&P 500 Index ($SPX) 10.6% gains during the same time frame.
Over the longer term, VLO edged up 3.5% on a YTD basis, significantly trailing the SPX’s 26.9% return. Similarly, over the past 52 weeks, VLO gained 9.6%, underperforming the SPX’s robust 31.5% growth during the same period.
To confirm the recent bearish trend, VLO has consistently traded below its 200-day moving average since mid-August and below its 50-day moving average since May.
Valero Energy shares declined over 2% on Dec. 4, driven by a 2% drop in WTI crude oil prices that pressured energy stocks.
Earlier, on Oct. 24, Valero Energy's shares fell over 1% following the release of its Q3 earnings results. The company reported EPS of $1.14, falling short of Wall Street's estimate of $1.29 and representing an 84.8% year-over-year decline. Revenue came in at $32.9 billion, slightly below expectations of $33 billion, marking a 14.4% year-over-year decrease.
Valero Energy has outperformed its competitor, PBF Energy, Inc. (PBF), which has posted a 25.6% decline on a YTD basis and a 30.6% drop over the past 52 weeks.
Despite VLO underperforming the broader sector, analysts maintain a bullish outlook on the stock. Of the 18 analysts covering it, the consensus rating is “Strong Buy.” The mean price target of $152.44 indicates a potential upside of 13.3% from its current level.
