Valero Energy Corp

VLO-N

NYSE:VLO

90.17
1.05 (1.15%)
Valero Energy Corporation is a Fortune 500 international manufacturer and marketer of transportation fuels, other petrochemical products, and power. It is headquartered in San Antonio, Texas, United States.
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Analysis and Opinions about VLO-N

Signal
Opinion
Expert
TOP PICK
TOP PICK
December 31, 2019
It broke out in October when he bought it. It's stable for an oil stock. When energy takes off, so will VLO. (Analysts’ price target is $108.94)
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Valero Energy Corp (VLO-N)
December 31, 2019
It broke out in October when he bought it. It's stable for an oil stock. When energy takes off, so will VLO. (Analysts’ price target is $108.94)
DON'T BUY
DON'T BUY
August 7, 2019
The refiner space is sooo volatile. Excess US supply of oil is a good thing. The real issue is demand. You need to see the share price clear out all the investors who timed their entry poorly. This could mean more downside to come -- don't catch the falling knife. Stay away for now.
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The refiner space is sooo volatile. Excess US supply of oil is a good thing. The real issue is demand. You need to see the share price clear out all the investors who timed their entry poorly. This could mean more downside to come -- don't catch the falling knife. Stay away for now.
TOP PICK
TOP PICK
July 11, 2019
Refiner, terrific yield. Stock's done well. High FMV. In the States, where there's better energy demand. Also defensive. He's trying to be partially aggressive, partially defensive. Yield is 4.26%. (Analysts’ price target is $103.56)
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Refiner, terrific yield. Stock's done well. High FMV. In the States, where there's better energy demand. Also defensive. He's trying to be partially aggressive, partially defensive. Yield is 4.26%. (Analysts’ price target is $103.56)
DON'T BUY
DON'T BUY
June 29, 2018

Well run, good pure play on refining. But you want to own refiners at beginning of cycle, when prices are low or going up, not now. Now you want to be in the integrated space.

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Well run, good pure play on refining. But you want to own refiners at beginning of cycle, when prices are low or going up, not now. Now you want to be in the integrated space.

BUY
BUY
June 15, 2018

Coming right down, as have a lot of energy stocks, seasonally weak. But trend is up, though a bit of volatility. Might get a bit more weakness through July. Energy is a really good investment. Could be a bit volatile with economic activity. For VLO, Kelt, and the etfs XEG and XLE, look at your technical lines over the next couple of weeks, you can pick some up and add to them over the summer.

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Coming right down, as have a lot of energy stocks, seasonally weak. But trend is up, though a bit of volatility. Might get a bit more weakness through July. Energy is a really good investment. Could be a bit volatile with economic activity. For VLO, Kelt, and the etfs XEG and XLE, look at your technical lines over the next couple of weeks, you can pick some up and add to them over the summer.

COMMENT
COMMENT
October 10, 2017

He is neutral on this and is very cautious on energy and has been for the entire year. At this time there has been a real whip in refiners. He has backed away from the space, because they are really whippy. Unlike some stories, such as biotech, you take the stairs up and the elevator down, so you have to be really careful about your entry point. He would prefer something a little more conservative such as Mkt Vectors Oil Services ETF (OIH-N).

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Valero Energy Corp (VLO-N)
October 10, 2017

He is neutral on this and is very cautious on energy and has been for the entire year. At this time there has been a real whip in refiners. He has backed away from the space, because they are really whippy. Unlike some stories, such as biotech, you take the stairs up and the elevator down, so you have to be really careful about your entry point. He would prefer something a little more conservative such as Mkt Vectors Oil Services ETF (OIH-N).

HOLD
HOLD
January 17, 2017

Has not been adding to his holdings, and wouldn’t add to it right now. In his view, this is the best operated independent refiner. It now pays a good dividend of something like 3.6%. However, if you look at the current P/E ratio, it is far higher than its historical single digit PE.

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Valero Energy Corp (VLO-N)
January 17, 2017

Has not been adding to his holdings, and wouldn’t add to it right now. In his view, this is the best operated independent refiner. It now pays a good dividend of something like 3.6%. However, if you look at the current P/E ratio, it is far higher than its historical single digit PE.

TOP PICK
TOP PICK
January 10, 2017

Refining doesn’t have anything to do with the price of oil, it has to do with crack spreads and refining margins. One of the things that has been absolutely killing refiners in the last 3-4 years is the RIN legislation of the Obama administration, requiring them to pay for renewable credit every time they produced gasoline and diesel fuel. The new administration is likely to change all that, and dramatically improve profitability. Dividend yield of 3.55%. (Analysts’ price target is $72.29.)

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Valero Energy Corp (VLO-N)
January 10, 2017

Refining doesn’t have anything to do with the price of oil, it has to do with crack spreads and refining margins. One of the things that has been absolutely killing refiners in the last 3-4 years is the RIN legislation of the Obama administration, requiring them to pay for renewable credit every time they produced gasoline and diesel fuel. The new administration is likely to change all that, and dramatically improve profitability. Dividend yield of 3.55%. (Analysts’ price target is $72.29.)

TOP PICK
TOP PICK
November 21, 2016

Every US refiner had to buy Renewable Energy Identification Number credits for its business and it destroyed their profitability. The new administration could be of a huge benefit to this industry. There have been 2 M&A deals in the refining industry in the last two weeks. (Analysts’ target: $66.88)

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Valero Energy Corp (VLO-N)
November 21, 2016

Every US refiner had to buy Renewable Energy Identification Number credits for its business and it destroyed their profitability. The new administration could be of a huge benefit to this industry. There have been 2 M&A deals in the refining industry in the last two weeks. (Analysts’ target: $66.88)

DON'T BUY
DON'T BUY
September 8, 2016

You should not be in it because it is not the right part of the cycle. It does better with declining oil prices. Also, it has had quite a run.

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Valero Energy Corp (VLO-N)
September 8, 2016

You should not be in it because it is not the right part of the cycle. It does better with declining oil prices. Also, it has had quite a run.

COMMENT
COMMENT
June 20, 2016

(Market Call Minute.) He doesn’t know where margins are going on the refining side. He thinks they are going to get squeezed a little given the rise in oil prices. It makes the earnings very volatile and you are not going to get a high valuation.

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(Market Call Minute.) He doesn’t know where margins are going on the refining side. He thinks they are going to get squeezed a little given the rise in oil prices. It makes the earnings very volatile and you are not going to get a high valuation.

DON'T BUY
DON'T BUY
June 10, 2016

If you did a comparison against a broad index, this is weaker than the index. It had a corrective period in 2008 and has taken a long time to get back up. Also, the upward trend line has been violated.

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If you did a comparison against a broad index, this is weaker than the index. It had a corrective period in 2008 and has taken a long time to get back up. Also, the upward trend line has been violated.

DON'T BUY
DON'T BUY
April 13, 2016

(Market Call Minute.) Refiners have struggled a little lately. For him, on the energy patch as a whole, he would like to see a bit more time go by and a little more sustainability.

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(Market Call Minute.) Refiners have struggled a little lately. For him, on the energy patch as a whole, he would like to see a bit more time go by and a little more sustainability.

PAST TOP PICK
PAST TOP PICK
April 7, 2016

(A Top Pick Jan 8/16. Down 8.79%.) Had a huge downturn in Jan/Feb due to the pickup in gasoline production. The period of seasonal strength ends at the beginning of April.

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(A Top Pick Jan 8/16. Down 8.79%.) Had a huge downturn in Jan/Feb due to the pickup in gasoline production. The period of seasonal strength ends at the beginning of April.

TOP PICK
TOP PICK
January 8, 2016

(His Top Pick stocks are still holding up as of present, but the big warning is the systemic risk that is involved with the market.) There are very few stocks that are good in the energy sector. Where the supply of oil presently is, gives you about 29 days of supply, so there is a substantial supply. All this company is going to do is refine it, which is going to be a significant tailwind for them. He has a long-term trend line support starting at about $60. As long as that can be maintained, there is an average gain between the start of the year and the beginning of May of about 20.1%, and that has been positive in 21 of the past 25 periods.

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(His Top Pick stocks are still holding up as of present, but the big warning is the systemic risk that is involved with the market.) There are very few stocks that are good in the energy sector. Where the supply of oil presently is, gives you about 29 days of supply, so there is a substantial supply. All this company is going to do is refine it, which is going to be a significant tailwind for them. He has a long-term trend line support starting at about $60. As long as that can be maintained, there is an average gain between the start of the year and the beginning of May of about 20.1%, and that has been positive in 21 of the past 25 periods.

HOLD
HOLD
November 27, 2015

He finds it too volatile for his clients. As oil prices have continued to decline and spreads for gasoline and diesel have continued to stay high, the profitability of a company like this has done really well.

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Valero Energy Corp (VLO-N)
November 27, 2015

He finds it too volatile for his clients. As oil prices have continued to decline and spreads for gasoline and diesel have continued to stay high, the profitability of a company like this has done really well.

DON'T BUY
DON'T BUY
September 9, 2015

Wouldn’t own this one here. It is a cyclical. His model price is $112, 84% over the last close of $60.83. You always get this in a cyclical. He would like to see it back at $15 again, and then he would be interested.

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Valero Energy Corp (VLO-N)
September 9, 2015

Wouldn’t own this one here. It is a cyclical. His model price is $112, 84% over the last close of $60.83. You always get this in a cyclical. He would like to see it back at $15 again, and then he would be interested.

COMMENT
COMMENT
August 31, 2015

Crack spread is the spread between the crude and the underlying refined product price. VLO-N is an example of a pure refiner. A few weeks ago crack spreads reduced and the price went right down. Warren Buffet bought a refiner today, relatively close to the top.

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Crack spread is the spread between the crude and the underlying refined product price. VLO-N is an example of a pure refiner. A few weeks ago crack spreads reduced and the price went right down. Warren Buffet bought a refiner today, relatively close to the top.

BUY
BUY
July 6, 2015

Owned personally in the past, but it is too volatile for his clients. It has done well over the year and seasonally the demand is highest here. They don’t find or produce oil. They buy it and refine it and they own gas stations. It is a good company to own long term. Over two years the refiners could be the right place to be, but they will be more volatile.

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Owned personally in the past, but it is too volatile for his clients. It has done well over the year and seasonally the demand is highest here. They don’t find or produce oil. They buy it and refine it and they own gas stations. It is a good company to own long term. Over two years the refiners could be the right place to be, but they will be more volatile.

WAIT
WAIT
April 24, 2015

Energy has a period of seasonal strength from January all the way through to May 9 on average, and this one has performed up to expectations. It is currently consolidating. We have the end of seasonal strength coming. If you are looking past the seasonality, you want to be into the refiners right now. From a seasonal play, he would recommend getting in right now, but from a longer-term perspective this is a place you want to be in the energy sector.

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Energy has a period of seasonal strength from January all the way through to May 9 on average, and this one has performed up to expectations. It is currently consolidating. We have the end of seasonal strength coming. If you are looking past the seasonality, you want to be into the refiners right now. From a seasonal play, he would recommend getting in right now, but from a longer-term perspective this is a place you want to be in the energy sector.

WEAK BUY
WEAK BUY
September 5, 2014

He is warm to it and owns it personally. Does not own it in client accounts because it is too volatile. Has the refining capacity to take heavy oil and refine it well. Thinks the price of oil will drop.

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Valero Energy Corp (VLO-N)
September 5, 2014

He is warm to it and owns it personally. Does not own it in client accounts because it is too volatile. Has the refining capacity to take heavy oil and refine it well. Thinks the price of oil will drop.

COMMENT
COMMENT
August 1, 2014

On and off he has liked the pure refining stocks, but for his own personal portfolio as it is a little risky for his clients. Even though they have tons of gas stations, what really moves this stock are the refining and marketing margins, which they make on each gallon of gas they sell. Refining margins depend on where West Texas prices are, where Brent North Sea prices are, and the spread between the 2. Also, if they are able to buy cheap Canadian oil this makes a big difference for them. When times are good that means they are getting the bigger spread.

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On and off he has liked the pure refining stocks, but for his own personal portfolio as it is a little risky for his clients. Even though they have tons of gas stations, what really moves this stock are the refining and marketing margins, which they make on each gallon of gas they sell. Refining margins depend on where West Texas prices are, where Brent North Sea prices are, and the spread between the 2. Also, if they are able to buy cheap Canadian oil this makes a big difference for them. When times are good that means they are getting the bigger spread.

BUY
BUY
July 29, 2014

The bad news is that the stock had moved back up to technical resistance in the $58-$59 area, before setting back down to another support level. Technically it has been walking upstairs steadily. The good news is that his Fair Market Value is well up over $100. He could see this getting as high as $80 on its current fundamentals.

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The bad news is that the stock had moved back up to technical resistance in the $58-$59 area, before setting back down to another support level. Technically it has been walking upstairs steadily. The good news is that his Fair Market Value is well up over $100. He could see this getting as high as $80 on its current fundamentals.

SELL
SELL
March 17, 2014

Refiners are the ultimate cyclicals because you have no control over input costs and very little control over the end demand. There is still excess refining capacity, particularly in Europe. If you own, take profits because at some stage something will come along to upset the apple cart. Very thin margins on very large volume businesses.

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Refiners are the ultimate cyclicals because you have no control over input costs and very little control over the end demand. There is still excess refining capacity, particularly in Europe. If you own, take profits because at some stage something will come along to upset the apple cart. Very thin margins on very large volume businesses.

COMMENT
COMMENT
January 2, 2014

Their refinery space is interesting. It has done extremely well. His favourite would probably be Marathon (MRO-N) which is all built on crack spreads, basically the differential between input costs (oil) and output (refined products). Right now, crack spreads are pretty wide, which has helped the refiners.

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Their refinery space is interesting. It has done extremely well. His favourite would probably be Marathon (MRO-N) which is all built on crack spreads, basically the differential between input costs (oil) and output (refined products). Right now, crack spreads are pretty wide, which has helped the refiners.

DON'T BUY
DON'T BUY
November 6, 2013

(Market Call Minute.) You don’t want to be anywhere near refineries at this time.

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Valero Energy Corp (VLO-N)
November 6, 2013

(Market Call Minute.) You don’t want to be anywhere near refineries at this time.

SELL
SELL
October 11, 2013

(Market Call Minute.) Thinks you are getting a squeeze on the refiners in the US. They’re getting under a little pressure.

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Valero Energy Corp (VLO-N)
October 11, 2013

(Market Call Minute.) Thinks you are getting a squeeze on the refiners in the US. They’re getting under a little pressure.

DON'T BUY
DON'T BUY
August 23, 2013

On anything to do with energy, the season tends to end in early October. In energy, you have had the majority of the move. This one has had an okay move recently. Doesn’t know if he would be interested in owning the stock after the next few weeks.

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On anything to do with energy, the season tends to end in early October. In energy, you have had the majority of the move. This one has had an okay move recently. Doesn’t know if he would be interested in owning the stock after the next few weeks.

DON'T BUY
DON'T BUY
September 24, 2012

If you are based in the mid west US or most of Canada you are buying oil at West Texas prices. Refineries in mid US and most of Canada have been very profitable. VLO is a mixture of both east coast and mid west US. You've probably seen the best in prices here.

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Valero Energy Corp (VLO-N)
September 24, 2012

If you are based in the mid west US or most of Canada you are buying oil at West Texas prices. Refineries in mid US and most of Canada have been very profitable. VLO is a mixture of both east coast and mid west US. You've probably seen the best in prices here.

PAST TOP PICK
PAST TOP PICK
April 10, 2012
(A Top Pick April 20/11. Down 14.68%.) Crack spreads are over $30. A good name to hold. Still likes.
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(A Top Pick April 20/11. Down 14.68%.) Crack spreads are over $30. A good name to hold. Still likes.
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