Why Valero Is Poised to Bounce Back

Updated
Why Valero Is Poised to Bounce Back

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 Energyhas 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.

Valero facts

Headquarters (founded)

San Antonio, Texas (1955)

Market Cap

$20.1 billion

Industry

Oil and gas refining and marketing

Trailing-12-Month Revenue

$136.0 billion

Management

Chairman/CEO William Klesse

President/COO Joseph Gorder

Return on Equity (average, past 3 years)

11.6%

Cash/Debt

$1.9 billion/$6.9 billion

Dividend Yield

2.4%

Competitors


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

On CAPS, 96% of the 4,557 members who have rated Valero believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, SterlingFinlAdvisors, tapped Valero as a particularly tempting bargain opportunity:

Stock is trading at a 40% discount to our valuation. Brent/WTI spread has all but disappeared and pipeline infrastructure to gulf improving. [Valero] is largest Oil/Gas refiner and trades at an +11% earnings yield based on analyst estimates of 2014 earnings. Dividends are increasing.

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 Poised to Bounce Back 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.

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