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Here's Why Retain Strategy is Apt for Valero Energy Stock Now
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Valero Energy Corporation (VLO - Free Report) is a premier oil refining company. Year to date, the company has gained 8%, outpacing the 1.4% rise of the composite stocks belonging to the industry.
What’s Favoring VLO?
Valero, currently carrying a Zacks Rank #3 (Hold), is a best-in-class oil refiner involved in the production of fuels and products that can meet the demands of modern life. Its refineries are located across the United States, Canada and the U.K. A total of 15 petroleum refineries, wherein Valero has ownership interests, have a combined throughput capacity of 3.2 million barrels per day. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Renewable Diesel business segment of the firm comprises Diamond Green Diesel (“DGD”) — a joint venture between Darling Ingredients Inc. and Valero. DGD is a leading renewable fuel producer in North America. Low-carbon fuel policies across the globe are primarily aiding the demand for renewable diesel, driving Valero’s Renewable Diesel business unit.
Valero boasts that its premium refining operations are resilient, even when the business operating environment is carbon-constrained. Its refining business has the capabilities to generate handsome cashflows that will allow it to return capital to shareholders and back growth projects.
Risks to VLO’s Business
However, being a premium refiner, the firm’s input costs are highly fluctuating, given the volatile pricing scenario of crude oil. Some other companies that have refining businesses and are likely to get exposed to volatility in oil prices are Marathon Petroleum Corp. (MPC - Free Report) , Phillips 66 (PSX - Free Report) and Exxon Mobil Corporation (XOM - Free Report) .
Marathon Petroleum, with its extensive refining operations, manages the largest refining system in the United States. Valero Energy boasts a combined daily throughput capacity of roughly 3.2 million barrels, with its 15 refineries across the United States, Canada and the U.K.
PSX boasts a diversified business model, with substantial involvement in refining midstream, chemicals and marketing & specialties. Across all its operations, Phillips 66 maintains a strong presence in terms of safety, profitability, scale and competitive advantages.
ExxonMobil also has a strong footing in the global refining business, having roughly 5 million barrels per day of distillation capacity across its 21 refineries.
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Here's Why Retain Strategy is Apt for Valero Energy Stock Now
Valero Energy Corporation (VLO - Free Report) is a premier oil refining company. Year to date, the company has gained 8%, outpacing the 1.4% rise of the composite stocks belonging to the industry.
What’s Favoring VLO?
Valero, currently carrying a Zacks Rank #3 (Hold), is a best-in-class oil refiner involved in the production of fuels and products that can meet the demands of modern life. Its refineries are located across the United States, Canada and the U.K. A total of 15 petroleum refineries, wherein Valero has ownership interests, have a combined throughput capacity of 3.2 million barrels per day. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Renewable Diesel business segment of the firm comprises Diamond Green Diesel (“DGD”) — a joint venture between Darling Ingredients Inc. and Valero. DGD is a leading renewable fuel producer in North America. Low-carbon fuel policies across the globe are primarily aiding the demand for renewable diesel, driving Valero’s Renewable Diesel business unit.
Valero boasts that its premium refining operations are resilient, even when the business operating environment is carbon-constrained. Its refining business has the capabilities to generate handsome cashflows that will allow it to return capital to shareholders and back growth projects.
Risks to VLO’s Business
However, being a premium refiner, the firm’s input costs are highly fluctuating, given the volatile pricing scenario of crude oil. Some other companies that have refining businesses and are likely to get exposed to volatility in oil prices are Marathon Petroleum Corp. (MPC - Free Report) , Phillips 66 (PSX - Free Report) and Exxon Mobil Corporation (XOM - Free Report) .
Marathon Petroleum, with its extensive refining operations, manages the largest refining system in the United States. Valero Energy boasts a combined daily throughput capacity of roughly 3.2 million barrels, with its 15 refineries across the United States, Canada and the U.K.
PSX boasts a diversified business model, with substantial involvement in refining midstream, chemicals and marketing & specialties. Across all its operations, Phillips 66 maintains a strong presence in terms of safety, profitability, scale and competitive advantages.
ExxonMobil also has a strong footing in the global refining business, having roughly 5 million barrels per day of distillation capacity across its 21 refineries.