NYSE:VLO

Valero Energy Corp (VLO)

259.83
+1.84 (0.71%)
as of Jun 11, 2026, 2:29:14 pm Market Open.
61 watching
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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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Similar
EQT
PAST TOP PICK
(A Top Pick July 27/07. Down 39%.) Refiners are caught with demand for gasoline going down and the price going up. They also have to buy crude. Reduced his weighting from 5% to 1.25%. Model price is $79, a 77% positive differential.
DON'T BUY
Stock price is probably down due to quality of assets and quality of management. When you are buying, you might as well buy the leading companies. Also prefers Canadian companies to get the dividend tax credit.
DON'T BUY
Higher crude prices made it harder to get a margin on gasoline.
SELL
Refineries are really having a tough time here. His model price is $79.26, a 66% positive differential. He still has it but it is no longer in his Top 10. There is going to come a time when these companies will make nothing but money. Consider changing to Canadian companies. (See his Top Picks.)
COMMENT
Crack spread for a refinery is when they buy oil at X dollars and refine it (the crack) and sell it. The profit is the crack spread. Demand for gasoline has not been strong and North American economy has been weakening. This is a cyclical business and that will change. If you are a long-term investor you could take advantage of the weakness and Buy. Doesn't see relief in the near term but in the medium to long term there could be value.
BUY
Refinery. Stock has been hit hard as oil has gone up. An attractive place to be. Have a lot of assets and there are no new refineries being built in the US.
WEAK BUY
A good entry point. Crude prices are very high. There is an imbalance in supply and demand hurting the sector. Coming into the driving season. The second quarter should be significantly stronger than the first.
WATCH
Valero fits into the group of refiners and marketers. Seasonally we are close to get into the driving period. So you will probably get a bounce in the short term. Use the bounce to evaluate if you want to keep it. Don't buy in now.
COMMENT
Crack spread is far more important to a refiner than the price of oil. The spread has been narrowing from exceptionally wide levels. All existing refineries are working to full capacity, and being fairly old having things occasionally go bang.
PAST TOP PICK
(A Top Pick Feb 1/07. Up 1.5% including dividends.) His model price is $93.96, a 66% positive differential. Still a Buy.
BUY
The refining industry is a difficult one, but they don’t build any more of them. Fairly cheap on a Price/Sales and Price/Earnings level. Would prefer a high dividend yield.
PARTIAL BUY
His model price is $94.91. Trying to put in a bottom here, which would be about $54.80. Look for it to stabilize around this price. Would be looking at accumulating a little bit here.
BUY
Likes refineries. Reasonably valued. Thinks it will go higher. There is a little seasonality with this where it ramps up in the summer and declines in the late summer and fall. You could buy today and hold on till mid-July when you could exit.
BUY
His model price is $115, a 63% positive differential.
BUY
Largest independent pure play in North America. There are seasonal issues here and right now there is not a lot of demand for heating oil.Believes it is the best way to play the refining cycle. He would own but he does not.
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