Based on the aggregated intelligence of 145,000-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
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Headquarters
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San Antonio, Texas (1955)
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Market Cap
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$9.4 billion
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Industry
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Oil and gas refining and marketing
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Trailing-12-Month Revenue
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$68.9 billion
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Management
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CEO William Klesse (since 2005)
CFO Michael Ciskowski (since 2003)
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Return on Equity (Average, Past 3 Years)
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6.7%
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Cash/Debt
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$1.6 billion / $7.4 billion
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Dividend Yield
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3.6%
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Competitors
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ExxonMobil (NYSE: XOM )
BP (NYSE: BP )
ConocoPhillips (NYSE: COP )
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CAPS Members Bullish on VLO Also Bullish on
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Chesapeake Energy (NYSE: CHK )
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CAPS Members Bearish on VLO Also Bearish on
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Tesoro (NYSE: TSO )
Citigroup (NYSE: C )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 4,517 members who have rated Valero believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Itemirus and nuf2bdangrus.
Just two weeks ago, Itemirus tapped the stock as a cheap way to gas up:
Valero is way oversold - the company is trading at around half book value, has manageable debt and is sitting on a billion dollar cash pile - moreover, it is owning significant ethanol producing assets - i am positive we will see her recover above $20 in a few months.
In a pitch from last month, nuf2bdangrus cracked the bull case even wider:
Despite the bad crack spread which affects refiner margins, they are trading as if there will be no recovery while the consumer stocks trade as if recovery is a sure thing. The truth lies somewhere in the middle, but failing to buy refiners at these cheap prices is a mistake you shouldn't make. … Moreover, [Valero] can refine types of crude other refiners can't, and when an external shock hits the oil markets, I think US refiners will benefit. Finally, when refiners as a group are trading at or near book value, the prospects of a takeover by an integrated oil company can't be ruled out.
What do you think about Valero, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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