Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil refining giant Valero Energy has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Valero and see what CAPS investors are saying about the stock right now.
San Antonio, Texas (1955)
Oil and gas refining and marketing
Chairman/CEO William Klesse
CFO Michael Ciskowski
Return on Equity (average, past 3 years)
$2.6 billion / $7.1 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 4,524 members who have rated Valero believe the stock will outperform the S&P 500 going forward.
Valero is one of the largest independent refiners in the U.S. ... As pipeline capacity and other infrastructure projects relieve the supply glut in Cushing, OK, discounted crude oil will flow south to the Gulf Coast. Valero is already expanding capacity and should realize gross margins more similar to Mid-Continent refiners like HollyFrontier.
Additionally, Valero is spinning off its retail segment (i.e. gas stations). Current investors will be able to enjoy a healthy balance between strong retail sales and improved gross refining margins.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Valero may not be your top choice.
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The article Why Valero Is Poised to Keep Popping originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.