Recently, Zacks.com users have been paying close attention to Valero Energy (VLO). This makes it worthwhile to examine what the stock has in store.
Valero Energy (VLO) is downgraded to 'hold' after a strong rally, with shares now fairly valued above the prior $165 target. VLO benefits from robust crack spreads, resilient demand, and strong refining margins, supporting impressive free cash flow and capital returns. Balance sheet strength enables aggressive buybacks and a 2.5% dividend, with a ~9% capital return yield, though upside is now limited.
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| - Industry | - Sector | R. Lane Riggs CEO | LSE Exchange | US91913Y1001 ISIN |
| US Country | 9,898 Employees | 20 Nov 2025 Last Dividend | 2 May 2013 Last Split | 4 Jan 1982 IPO Date |
Valero Energy Corporation, a leading manufacturer, marketer, and distributor of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, has a broad presence across the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and other international markets. Established in 1980 and based in San Antonio, Texas, the company has evolved through the years, including a name change in 1997 from Valero Refining and Marketing Company to Valero Energy Corporation. Today, Valero operates through three main segments: Refining, Renewable Diesel, and Ethanol, highlighting its diversified approach towards traditional energy resources and renewable energy solutions.
The diversification into renewable energy sources such as renewable diesel and ethanol, alongside traditional petroleum products, positions Valero Energy Corporation as a comprehensive energy provider acclimating to the evolving demands of global energy markets.