San Antonio, Texas-based Valero Energy Corporation (VLO) is one of the world's largest independent petroleum refiners and a leading producer of low-carbon transportation fuels. It is valued at a market cap of $73.4 billion.
This energy company has notably outperformed the broader market over the past 52 weeks. Shares of VLO have rallied 80.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 26.6%. Moreover, on a YTD basis, the stock is up 50.1%, compared to SPX’s 8.1% rise.
Zooming in further, VLO’s outperformance looks more pronounced when compared to the State Street Energy Select Sector SPDR ETF’s (XLE) 33.9% uptick over the past 52 weeks and 28.5% rise on a YTD basis.
On Apr. 30, shares of VLO closed up marginally after reporting stronger-than-expected Q1 results. The company’s revenue grew 7% year-over-year to $32.4 billion, topping analyst estimates by 4.9%. Moreover, its EPS of $4.22 handily exceeded consensus expectations of $3.07.
For the current fiscal year, ending in December, analysts expect VLO’s EPS to grow 164.1% year over year to $28.02. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 11 “Strong Buy,” one “Moderate Buy,” seven "Hold,” and one "Strong Sell” rating.
The configuration is slightly less bullish than a month ago, with no analyst suggesting a “Strong Sell” rating.
On May 4, J.P. Morgan analyst Zach Parham maintained a “Buy” rating on VLO and set a price target of $299, indicating a 22.5% potential upside from the current levels.
The mean price target of $258.33 suggests a 5.8% premium to its current price levels, while its Street-high price target of $300 implies a 22.9% potential upside.
