San Antonio, Texas-based Valero Energy Corporation (VLO) manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products worldwide. With a market cap of $40.2 billion, the company operates through Refining, Renewable Diesel, and Ethanol segments.
Companies worth $10 billion or more are generally labeled as “large-cap stocks”, and Valero Energy fits this criterion perfectly. The company owns 15 petroleum refineries and is one of the leading renewable fuels producers, with a growing presence in ethanol and renewable diesel, reflecting its commitment to sustainability alongside core refining operations.
Valero Energy currently trades 23.5% below its 52-week high of $167.78 recorded on July 31, 2024. VLO's stock has gained 1.9% over the past three months, surpassing the broader Dow Jones Industrials Average's ($DOWI) marginal rise.
Longer term, Valero Energy stock has surged 4.7% on a YTD basis, whereas DOWI has increased marginally. However, shares of VLO declined 17.6% over the past 52 weeks, notably underperforming the Dow Jones’ nearly 10% rise over the same time frame.
VLO stock has been trading above its 50-day moving average since early May. However, it has remained below its 200-day moving average since mid-August 2024.
Valero Energy’s stock prices fell 1% following the release of its mixed Q1 2025 results on Apr. 24. The company reported revenue of $30.3 billion, down 4.7% year-over-year, but still surpassed Street expectations by 6.3%. Its adjusted EPS fell sharply by 76.8% from the prior year to $0.89, though it came in well above the consensus estimate of $0.43. On a more positive note, the company raised its quarterly dividend by 5.6% compared to the year-ago quarter to $1.13 per share, showcasing its commitment to shareholders.
Compared to its rival, Marathon Petroleum Corporation (MPC) has outpaced VLO stock. MPC stock has soared 14.8% on a YTD basis and collapsed 8.9% over the past 52 weeks.
Among the 18 analysts covering the VLO stock, the consensus rating is a “Strong Buy.” Its mean price target of $145.83 suggests a 13.6% upside potential from current price levels.
