5-Star Stocks Poised to Pop: Valero Energy

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil refining giant Valero Energy (NYSE: VLO  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Valero's business and see what CAPS investors are saying about the stock right now.

Valero facts

Headquarters (founded) San Antonio, Texas (1955)
Market Cap $17.7 billion
Industry Oil and gas refining and marketing
Trailing-12-Month Revenue $137.3 billion
Management Chairman/CEO William Klesse
CFO Michael Ciskowski
Return on Equity (average, past 3 years) 6.2%
Cash/Debt $1.3 billion / $7.0 billion
Dividend Yield 2.1%
Competitors BP
Chevron
ExxonMobil

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 4,547 members who have rated Valero believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star Staka, offered a balanced take on the opportunity:

Positive:

- Good momentum (chart and business)

- Planned selling of retail business will unlock value

- Growing export business provides higher profits than in the US

- Transformation of unprofitable Aruba refinery into storage facility will bring down costs and increase margins

Negative:

- Cyclical value

- Growing oil price

- Investments into ethanol production facilities might stay unprofitable if corn prices stay high

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Valero may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Chevron. The Fool owns shares of Exxon. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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