Valero Energy Corporation (VLO), based in San Antonio, is the largest independent refiner and marketer of petroleum products in the U.S., with refineries across the U.S., Canada, and the U.K. Valued at a market cap of $43.9 billion, it is a leading ethanol producer with plants in the Midwest.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Valero Energy fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the energy sector. Valero's strategic initiatives, strong demand for refined fuels, and investments in renewable energy have propelled the company into the ranks of major industry leaders.
However, the oil & gas leader has dipped 27.3% from its 52-week high of $184.79, which it achieved on April 5. Shares of Valero declined 10.4% over the past three months, trailing behind the VanEck Oil Refiners ETF’s (CRAK) 4.5% dip during the same time frame.
Over the longer term, VLO stock has rallied 3.3% on a YTD basis but plunged 7.7% over the past 52 weeks, outpacing CRAK’s 2% dip in 2024 and 5.3% decline over the past year.
To confirm this bearish trend, VLO has been trading below its 50-day and 200-day moving averages since last month.
Geopolitical conflicts and heightened competition in the refinery industry have hampered VLO’s price performance this year,
VLO dropped more than 1% on Sept. 4 as the broader energy stocks were pressured by a drop in WTI crude prices to an 8-3/4 month low.
However, the stock surged 5.5% on Jul. 25 after reporting its Q2 earnings, where it surpassed the market’s expectations, primarily driven by strong processing volumes despite weaker refining margins.
Valero Energy's competitor, PBF Energy, Inc. (PBF), has underperformed – not just VLO but the oil refinery industry. Shares of PBF Energy have declined 25.8% on a YTD basis and 39.7% over the past 52 weeks.
Despite the underperformance, Wall Street remains extremely bullish on VLO's prospects. The company has a consensus rating of “Strong Buy” from the 17 analysts covering the stock. The mean target of $170.35 suggests a 26.9% premium from current price levels.
On the date of publication, Kritika Sarmah 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.
