Valero Energy (VLO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
VLO's crude-sourcing flexibility and sustained heavy sour crude discounts support refining margins, with Venezuelan and Canadian supplies creating further opportunities.
Valero Energy (VLO) is my Top 2027 Long Idea, rated Strong Buy, with a $660 price target and at least 50% upside potential. Macro tailwinds—persistent Strait of Hormuz disruptions, elevated crack spreads, and low US oil reserves—continue to drive VLO's earnings and valuation upside. Despite a 95% share price gain since April 2026, VLO trades at only 8x forward P/E, offering significant value relative to historical and peer multiples.
| Capital Markets Industry | Financials Sector | R. Lane Riggs CEO | XWBO Exchange | US91913Y1001 ISIN |
| US Country | 9,785 Employees | 31 Jul 2026 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.