VLO Stock Analysis — Valero Energy
Sector: Energy
AI Verdict
Valero trades at 10.0x next year's earnings while expected to nearly double profits, so you're getting growth at a bargain if its scale-driven moat keeps margins intact.
Competitive Moat
Valero operates one of the largest and most complex independent refining systems in North America, giving it scale and logistical advantages in sourcing crude and distributing refined products. Its integrated logistics network and ability to process a wide range of feedstocks help protect margins against commodity price swings.
Summary
Valero's forward P/E of 10.0x and expected 79.5% EPS growth make it a standout among refiners as earnings surge.
Where It Stands
Shares are up 174.49% over the past year, RSI is elevated at 69.5 (pullback risk), and it trades at 10.0x next year's earnings versus the sector median of 12x.
Key Metrics
- RSI: 69.5 — Near Overbought
- Trailing P/E: 18.0x
- Earnings yield (trailing): 5.56% — What is earnings yield?
- Forward P/E: 10.0x
- PEG Ratio: 0.24
- Earnings Growth: +0.8%
- Revenue Growth: +0.1%
- Market Cap: $113.2B
- Dividend Yield: 0.03%
- 1-Year Return: 174.49%
- 52-Week High: $446.48
- 52-Week Low: $155.29
Learn About More Stock Metrics
- Beta: Learn more
- Return on Equity (ROE): Learn more
- EV/EBITDA: Learn more
Analyst Consensus
14 Buy · 11 Hold · 1 Sell (26 analysts)
Bull Case
With analysts forecasting 79.5% EPS growth and a forward P/E of just 10.0x, you're paying a low price for explosive earnings momentum.
Bear Case
RSI at 69.5 signals overbought territory, so even a modest P/E pullback to the sector median of 12x could mean a sharp correction if growth disappoints.
Catalyst to Watch
Watch for quarterly earnings updates — any sign that EPS growth falls short of the 79.5% target could trigger a re-rating.