Valero Energy Corporation (NYSE: $VLO) is a petroleum company that manufactures and markets transportation fuel, petrochemicals, and power. The company is one of the world’s biggest independent petroleum refiners. Additionally, it is one of the biggest producers of renewable diesel globally. Its headquarters are in San Antonio, TX.
Stock Performance
Valero Energy Corp. (VLO) stock has had a mixed performance recently. In the past 12 months, the stock has seen a high of $152.20 and a low of $104.18. The Wednesday, December 6, 2023, trading session was the same. It swung between $122.51 and $124.65 before closing at $123.83 per share.
Overall, Valero Energy Corp. looks promising. It has an operating margin of 9.55%, a gross profit margin of 10.17%, and a net profit margin of 7.1%. All the fundamentals show it is a company that can generate profit. Its capital structure shows that its debt-to-equity ratio is 0.36, while its trailing P/E is 4.19.
VLO Stock Forecast
Valero Energy Corp. stock has experienced a general downturn in performance. The stock is below the 50-day and 200-day moving averages of $127.79 and $125.72, respectively. For most traders, it often signals that the stock may underperform. It is also worth noting that VLO stock has seen worse performance than the S&P 500 index, which is up 19.48% year-to-date. In the same period, VLO stock has only gained 3.13%.
Based on existing data, analysts give VLO stock a moderate buy rating. They have set a high price target of $176 and a low of $128. The average target for VLO stock is $155.54, a 25.56% upside based on its closing price.
Should You Buy Valero Energy Corporation Stock?
VLO stock, like other energy stocks, is cyclical. It is prone to boom-and-bust cycles as the economy experiences changes. 2023 has been a tough year for many, with most energy stocks performing poorly. However, as the economy begins to pick up pace and energy consumption rises, prices will start to climb again.
In such a scenario, it could boost the price of Valero Energy Corporation stock. Another factor that could help boost the stock is its focus on producing renewable diesel. As the global push for clean energy sources gains momentum, it could give Valero Energy Corp a unique advantage.
However, the cautious buy rating by the analysts is accurate. While the US economy is showing signs of recovery, it is not assured that it will succeed. As such, the stock could be headed for another rough year in 2024 if macroeconomic conditions worsen or fail to improve.
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