Why Valero Is Ready to Rebound

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil refining giant has earned a respected four-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.

Valero facts

Headquarters (founded)

San Antonio, Texas (1955)

Market Cap

$21.1 billion

Industry

Oil and gas refining and marketing

Trailing-12-Month Revenue

$136.6 billion

Management

Chairman/CEO William Klesse

President/COO Joseph Gorder

Return on Capital (average, past 3 years)

10.2%

Cash/Debt

$1.7 billion / $7.1 billion

Dividend Yield

2.1%

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 4,521 members who have rated Valero believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those Fools, All-Star AndreCCCP, succinctly summed up the Valero bull case for our community:

[W]ell positioned to benefit from the increasing oil production from shale plays and the Canadian oil sands. Most of this oil is traveling through the Mid-Continent and heading toward the Gulf Coast. We see Valero, as the largest Gulf Coast refiner, benefiting from the increasing supplies, which should lead to lower input costs, creating a cost advantage. We also expect Valero to gain from higher global distillate demand.

Of course, there are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report - it's totally free.

The article Why Valero Is Ready to Rebound originally appeared on Fool.com.

Motley 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.

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