Valero Energy (VLO) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
VLO's flexible refinery network enables the company shift product yields and process diverse crude grades, helping it capture higher margins in volatile markets.
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California Governor Gavin Newsom said on Tuesday that Valero Energy would keep importing gasoline into Northern California after its Benicia refinery ceases operations in April rather than making a full exit from the market.
In the closing of the recent trading day, Valero Energy (VLO) stood at $178.27, denoting a -1.27% move from the preceding trading day.
Valero Energy (VLO) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Valero Energy Corporation is rated a "Buy," with the stock expected to surpass $200, driven by U.S. actions in Venezuela. Venezuela's vast, heavy crude reserves require complex U.S. refining, positioning VLO to benefit from increased business opportunities. VLO recently beat EPS and revenue forecasts, trades near all-time highs, and offers a 2.5%+ dividend yield.
VLO trades at a premium EV/EBITDA, but soft oil prices and complex refineries could support margins, raising questions on whether VLO is worth buying now.
In the latest trading session, Valero Energy (VLO) closed at $165.31, marking a +1.55% move from the previous day.
WTI crude below $60 could lift Valero Energy's margins, as the refiner buys cheaper oil and turns it into gasoline and distillates as inventories rise.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.