Why Valero Is Ready to Rebound

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 respected four-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

$21.1 billion

Industry

Oil and gas refining and marketing

Trailing-12-Month Revenue

$136.6 billion

Management

Chairman/CEO William Klesse

President/COO Joseph Gorder

Return on Capital (average, past 3 years)

10.2%

Cash/Debt

$1.7 billion / $7.1 billion

Dividend Yield

2.1%

Competitors

BP

Chevron

ExxonMobil

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

On CAPS, 96% of the 4,521 members who have rated Valero believe the stock will outperform the S&P 500 going forward.   

Earlier today, one of those Fools, All-Star AndreCCCP, succinctly summed up the Valero bull case for our community:

[W]ell positioned to benefit from the increasing oil production from shale plays and the Canadian oil sands. Most of this oil is traveling through the Mid-Continent and heading toward the Gulf Coast. We see Valero, as the largest Gulf Coast refiner, benefiting from the increasing supplies, which should lead to lower input costs, creating a cost advantage. We also expect Valero to gain from higher global distillate demand.

Of course, there are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report  it's totally free.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2411552, ~/Articles/ArticleHandler.aspx, 9/17/2014 6:03:27 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement