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.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- This Penny Stock Just Surged 380% on a Mega Deal. Is It a Buy, Sell, or Hold?
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