NYSE:VLO

Valero Energy Corp (VLO)

259.83
+1.84 (0.71%)
as of Jun 11, 2026, 2:29:14 pm Market Open.
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Investor Insights
star iconJun 10, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Valero Energy Corp (VLO) has garnered mixed reviews from experts regarding its investment profile. One reviewer highlights the company's ability to generate profits as long as it manages the difference between oil purchase costs and gas prices effectively. Another expert notes that, despite the favorable conditions of $150 crude oil and ongoing geopolitical tensions, significant trading activity appears subdued, indicating a lack of strong interest from major investors at this time. In terms of dividends, Valero is viewed as a more stable option compared to FANG, which may offer higher volatility. Investors seeking a more conservative approach might prefer VLO for its dividend payout, while those looking for high-risk, high-reward opportunities might lean towards FANG. Overall, VLO presents a cautious investment choice amid the current energy landscape.

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Consensus
Neutral
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Valuation
Fair Value
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EQT
TOP PICK
Cracking margin has really blown out. They are a refining company. Lot of refining capability. They have a valuable business model and they have diversity. They are trading at a discount to pier group.
COMMENT
Refining is an ugly business. Not an industry of secular growth but one of cyclical margin swings. Hard to make money at it and plants are hard to run. Sector has just had a bounce off a significant rally. Has a fair amount of debt. If dynamics for the sector continue positive for a little while, they will be more of a beneficiary than the un-levered players. (He just sold a refiner, Frontier Oil (FTO-N).)
BUY
His model price is $44.50, a 45% positive differential. These stocks are very cyclical and pricing has to be exactly right in order for the refiners to make money.
DON'T BUY
(Market Call Minute.) Refining sector has been one of the most horrible ones over the last couple of years. Still too much capacity and too much inventory and nobody is making any money.
SELL
(Market Call Minute) It refines and he is negative on refineries.
HOLD
(Market Call Minute.) Pre-eminent refining company. Refining is in a tough spot but oil prices will go up.
DON'T BUY
While oil price has been going up, demand has not. This one is not attractive enough over the long term to be in it.
COMMENT
Refiners have had a very challenging period. Going forward there are other opportunities to put your money, as he doesn't see a dramatic recovery in the sector.
HOLD
Crack spreads are not moving up. Can refine many grades of crude but they don't get paid for this. Can't see any upside.
COMMENT
Largest independent refinery/gas marketing in North America. Margins are squeezed and it is not profitable to be in this business. Refineries are up for sale or are being closed so in the long run this will be good as capacity comes down.
DON'T BUY
Largest independent oil refiner and marketer in North America. Don't own oil wells. They buy oil, refine and sell through their own gas stations or wholesale it out. Dependent on margins that the market gives them at the time. In the last year or so, it has not been a great business to be in. You have to watch what the margins are.
COMMENT
Refiners tend to do a little bit better in the summer. If you expect energy prices to hold these levels and work higher, you will likely do better in a producer rather than a refiner.
BUY
His model price is $34.87, a 75% positive differential.
COMMENT
Crack spread has been going up nicely from $4 to about $15 in the last 3 weeks. Even though this company is lagging other companies he wouldn't worry about it. One of the biggest and most liquid and will play catch-up. If the crack spread narrows, the price of the stock will drop again.
BUY
Refinery and makes its money from the crack spread. Gasoline just made a reverse head and shoulders pattern implying that gasoline/heating oil prices are starting to move very strongly relative to crude oil. Very positive fundamentally. Stock looks like it has been oversold. Has a good chance of getting close to its breakdown point of $46.
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