VLO Stock Analysis — Valero Energy
Sector: Energy
AI Verdict
Valero trades at 9.7x next year's earnings with triple-digit growth expected, making it cheap for the growth on offer if its scale and refining flexibility continue to deliver.
Competitive Moat
Valero is the largest independent petroleum refiner in the US, with a network of strategically located refineries and integrated logistics that create scale and cost advantages. Its complex refining assets allow it to process a wider range of crude types, protecting margins when oil markets are volatile.
Summary
Valero's forward P/E of 9.7x and forecasted 112.5% EPS growth make it a standout among refiners.
Where It Stands
Shares are up 89.76% over the past year, the RSI is 74.1 (overbought), and the forward P/E of 9.7x is well below the sector median of 12x.
Key Metrics
- RSI: 74.1 — Overbought
- Trailing P/E: 20.5x
- Forward P/E: 9.7x
- PEG Ratio: 0.19
- Earnings Growth: +1.1%
- Revenue Growth: -0.0%
- Market Cap: $84.0B
- Dividend Yield: 0.02%
- 1-Year Return: 89.76%
- 52-Week High: $274.92
- 52-Week Low: $130.78
Analyst Consensus
13 Buy · 10 Hold · 2 Sell (25 analysts)
Bull Case
With analysts expecting 112.5% EPS growth and a forward P/E of just 9.7x, you're paying a low price for explosive earnings momentum.
Bear Case
If the trailing P/E reverts from 20.5x to the sector median of 12x, shares could drop over 40% from current earnings multiples, especially with an RSI of 74.1 signaling pullback risk.
Catalyst to Watch
Watch for quarterly earnings—if EPS growth hits the 112.5% target, the low forward P/E could quickly rerate upward.