San Antonio, Texas-based Valero Energy Corporation (VLO) is one of the world’s largest independent petroleum refiners and a leading producer of low-carbon transportation fuels. It is valued at a market cap of $73.4 billion.
This energy company has notably outperformed the broader market over the past 52 weeks. Shares of VLO have rallied 80.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 26.6%. Moreover, on a YTD basis, the stock is up 50.1%, compared to SPX’s 8.1% rise.
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Zooming in further, VLO’s outperformance looks more pronounced when compared to the State Street Energy Select Sector SPDR ETF’s (XLE) 33.9% uptick over the past 52 weeks and 28.5% rise on a YTD basis.
On Apr. 30, shares of VLO closed up marginally after reporting stronger-than-expected Q1 results. The company’s revenue grew 7% year-over-year to $32.4 billion, topping analyst estimates by 4.9%. Moreover, its EPS of $4.22 handily exceeded consensus expectations of $3.07.
For the current fiscal year, ending in December, analysts expect VLO’s EPS to grow 164.1% year over year to $28.02. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 11 “Strong Buy,” one “Moderate Buy,” seven “Hold,” and one “Strong Sell” rating.
The configuration is slightly less bullish than a month ago, with no analyst suggesting a “Strong Sell” rating.
On May 4, J.P. Morgan analyst Zach Parham maintained a “Buy” rating on VLO and set a price target of $299, indicating a 22.5% potential upside from the current levels.
The mean price target of $258.33 suggests a 5.8% premium to its current price levels, while its Street-high price target of $300 implies a 22.9% potential upside.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
