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 and see what CAPS investors are saying about the stock right now.
Valero facts
|
Headquarters (founded) |
San Antonio, Texas (1955) |
|
Market Cap |
$24.2 billion |
|
Industry |
Oil and gas refining and marketing |
|
Trailing-12-Month Revenue |
$139.3 billion |
|
Management |
Chairman/CEO William Klesse CFO Michael Ciskowski |
|
Return on Equity (average, past 3 years) |
10.6% |
|
Cash/Debt |
$2.6 billion / $7.1 billion |
|
Dividend Yield |
1.8% |
|
Competitors |
BP Chevron ExxonMobil |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 4,524 members who have rated Valero believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, FortressAssetMgm, succinctly summed up the bull case for our community:
Valero is one of the largest independent refiners in the U.S. ... As pipeline capacity and other infrastructure projects relieve the supply glut in Cushing, OK, discounted crude oil will flow south to the Gulf Coast. Valero is already expanding capacity and should realize gross margins more similar to Mid-Continent refiners like HollyFrontier.
Additionally, Valero is spinning off its retail segment (i.e. gas stations). Current investors will be able to enjoy a healthy balance between strong retail sales and improved gross refining margins.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong 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.
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