NYSE:VLO

Valero Energy Corp (VLO)

397.04
+14.09 (3.68%)
as of Sep 15, 2026, 8:00:00 pm Market Open.
62 watching
0
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.
DON'T BUY
Started to close some capacity at some of their refineries because the crack spreads have not been favourable. This is why the stock price has come down. Best in class as far as refineries are concerned but this is not the right time.
DON'T BUY
Had a little bit of positive news on draws on US inventory today but it is hard to be bullish on refiners. Catalytic spreads are way down. You'll have to see a recovery by the consumer first.
DON'T BUY
Refineries are almost structured to be trading vehicles rather than long-term holds. Trading is tough at the best of times, let alone these times.
HOLD
Right now you don't want to be buying independent refineries. There are a lot of heavy oil refineries under development that are going to come out globally. If you own, Hold until the heating season and the early parts of the winter, as there is some seasonality in the share price.
BUY
One of the largest refiners in the US. Benefiting right now because of falling oil prices. This is a stock that he was looking at but bought Marathon Oil (MRO-N) instead.
COMMENT
Refiners have been hit pretty hard. With the price of oil going down, the market should be bullish on refiners but he feels oil will hold at $100. This is a value play and could be good as a long-term play.
WAIT
He is very positive on refining. This is a bear market but on a longer time horizon the assets should be worth an awful lot. There is excess refining capacity right now. On a 2 or 3 year basis, it's a great time to buy. However, this one can go a lot lower.
COMMENT
Has been caught up in the squeeze on refinery margins. With the current retreat of crude, refinery margins might improve so there could be a bit of a bounce back. You could get more protected exposure through Petro-Can (PCA-T) or one of the integrateds in Canada.
BUY
Largest independent refining and marketer in the US of gasoline. Has suffered greatly as oil prices have gone up. Margins at the refining level and retail level has shrunk. Drop in oil prices is bullish for this company.
DON'T BUY
Spreads are not attractive enough to get into this stock. Would need $70-$80 oil. Service companies are a better option.
PAST TOP PICK
(A Top Pick July 27/07. Down 51%.) Everything has gone wrong for the refiners including refining capacity in the majors. As a value manager, his big concern would be a Value Trap. Once this one dropped its market cap on the S&P 500, he dropped its weighting. Still has value and great earnings.
DON'T BUY
Refinery. Has had a difficult time because of high oil prices and managing the mix between distillates and gasoline etc. Believes that oil is in a correction, not broken down. Difficult industry and margins are very tough to make. There are better places for your money.
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