San Antonio, Texas-based Valero Energy Corporation (VLO) manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States and internationally. The company has a market capitalization of $66.4 billion and operates through the Refining, Renewable Diesel, and Ethanol segments.
Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” VLO fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the oil and gas refining & marketing industry.
The stock touched its 52-week high of $221.95 yesterday and is currently trading 1.9% below that peak. VLO stock has climbed 23% over the past three months, outperforming the S&P 500 Index’s ($SPX) marginal decline during the same time frame.
Moreover, Valero Energy has rallied the broader market over the longer term. The stock has surged 69.6% over the past 52 weeks, while SPX delivered 16.5% returns over the same time frame.
VLO has been trading above its 200-day moving average since last year and above its 50-day moving average since early January, indicating bullish momentum.
VLO stock’s rally over the past year has been impressive. Strong refining margins and cash flows have set a solid earnings foundation, and over the past year, Valero has consistently beaten expectations and boosted shareholder returns through dividends and buybacks.
In fact, the company has paid dividends for 28 consecutive years, with a forward yield of 2.2% comfortably above the State Street SPDR S&P 500 ETF Trust’s (SPY) 1.07%. Analysts are lifting forward estimates as Wall Street warms to its profitability and capital discipline.
Geopolitics has added spark – as Middle East conflict disrupts regional supply and key refinery capacity offshore, U.S. refiners like Valero are suddenly more valuable with diesel and gasoline prices spiking faster than crude, and global threats tightening fuel supplies. At the same time, Valero’s ability to handle heavy crude – including resumed flows from Venezuela – gives it a strategic edge. Together, margin resilience, geopolitical premium, and shareholder returns are keeping VLO ahead of the market.
When stacked against its peer, Phillips 66 (PSX), VLO has outperformed comfortably. Over the past year, PSX stock has climbed 27.8%, lagging behind VLO.
Adding to that, sentiment on VLO remains somewhat positive. Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy.” While the stock currently trades above its mean price target of $198.21, the Street-high price target of $220 indicates 1.1% potential upside.
