$140.91
arrow_drop_down0.14%Is VLO a Buy or Sell based on AI Analysis?
Fundamental Analysis
Valero Energy Corp, a stock with a symbol VLO, has a market value score of 78, indicating a strong performance in terms of market value. Additionally, the company has a high industry score of 95, showcasing its dominance within the energy sector. With a return on equity of 33.89% and a net margin of 6.1%, Valero demonstrates strong financial health and profitability. Furthermore, the company has a current ratio of 1.56, indicating a healthy balance between current assets and liabilities. Valero also boasts a solid dividend yield of 2.99%, providing investors with a regular income stream. In terms of valuation, Valero Energy Corp has a price-to-sales ratio of 0.34, indicating that the company is trading at a relatively low multiple of its revenue. With a peg ratio of 0.21, Valero is considered undervalued compared to its expected earnings growth. Additionally, the company's price-to-book ratio of 1.81 suggests that the stock may be trading at a discount to its intrinsic value. Valero's strong fundamentals, coupled with its attractive valuation metrics, make it an appealing investment opportunity for investors looking for growth potential in the energy sector.
Positive Development
Valero Energy Corp continues to impress investors with its strategic positioning and operational excellence, as evidenced by its strong performance in recent trading sessions. The company's strong resilience in the face of a carbon-constrained environment is a positive factor, as it demonstrates the ability to adapt and perform well even in challenging conditions. Valero's outperformance against competitors in the market is a positive development, as it suggests the company's competitive advantage and market position.
Negative Development
The company's recent underperformance in comparison to competitors, despite daily gains, could be a cause for concern. The unplanned unit shutdown at the company's 149,000 b/d Benicia refinery in Northern California has resulted in flaring, which could potentially impact the company's operations. The company's relatively low profit margins, as evidenced by its EPS and FCF margins, could be a concern for investors.
Technical Analysis
Valero Energy Corp (VLO) has a neutral technical rating, with a mix of buy, hold, and sell indicators. In the past month, there have been 2 buy indicators, including MACD and ATR, as well as 3 hold indicators, such as RSI, ADX, and ROC. On the other hand, there have been 3 sell indicators, including CCI, WILLR, and STOCHRSI. This suggests that the stock is currently in a period of indecision and could potentially see some volatility in the near future based on these technical signals. Additionally, Valero Energy Corp's technical analysis also includes information on its seven-day price change percent, which stands at 2.17%. This indicates that the stock has experienced a slight increase in price over the past seven days. Furthermore, the stock's fifty-two-week high and low prices are listed at $152.20 and $104.18, respectively. This information provides investors with a historical context of the stock's price movement and potential trading ranges. Overall, these technical indicators can help investors make more informed decisions when trading Valero Energy Corp stock.
Conclusion and recommendation
Based on the data provided for Valero Energy Corp, it is evident that the company is performing well in the stock market with a current score of 78. Valero Energy Corp has a stable financial position, with a market cap of $48.12B and a healthy dividend yield of 2.99%. The company also boasts strong return on equity of 33.89% and return on assets of 12.05%. Furthermore, Valero Energy Corp has shown consistent growth over the past five years with a price change percent of 75.37%, indicating a promising investment opportunity. With a strong presence in the Energy sector and positive analyst recommendations, Valero Energy Corp appears to be a solid choice for investors looking for long-term growth and stable returns. In conclusion, Valero Energy Corp stands out as a strong player in the stock market with impressive financial indicators and consistent growth performance. The company's strong market and industry scores, along with positive analyst forecasts, reflect its potential for future growth and profitability. With a solid track record of financial stability and a focus on increasing shareholder value through dividends and stock performance, Valero Energy Corp is well-positioned to deliver value to its investors. Overall, Valero Energy Corp presents a compelling investment opportunity for those seeking a reliable and profitable addition to their portfolio.