With a market capitalization of $61.8 billion, Valero Energy Corporation (VLO) is a global energy manufacturer and marketer that produces low-carbon, petroleum-based transportation fuels and petrochemicals. It operates through the Refining, Renewable Diesel and Ethanol segments, supplying fuels and related products under well-known brands such as Valero, Diamond Shamrock and Diamond Green Diesel.
Shares of the San Antonio, Texas-based company have outperformed the broader market over the past 52 weeks. VLO shares are up 51.7% over this period, while the broader S&P 500 index ($SPX) is up 14.9%. Additionally, the company’s shares are up nearly 24% year over year, compared to SPX’s gain of 1.1%.
Looking closer, shares of the oil refiner have also outperformed the State Street Energy Select Sector ETF SPDR (XLE)’s 20.2% gain over the past 52 weeks.
Despite beating expectations with fourth-quarter 2025 adjusted earnings per share of $3.82 and revenue of $30.37 billion, Valero shares fell marginally on Jan. 29 as investors focused on weaker full-year profitability, with 2025 net income declining to $2.3 billion ($7.57 per share) from $2.8 billion. ($8.58 per share) in 2024. The market was also cautious about weakness at the segment level, particularly in renewables. Diesel, where operating income fell to $92 million from $170 million year over year.
For the fiscal year ending December 2026, analysts expect VLO’s adjusted EPS to grow 15.8% year over year to $12.29. The company’s track record of earnings surprises is promising. It beat consensus estimates over the past four quarters.
Among the 22 analysts covering the stock, the consensus rating is “Moderate Buy.” This is based on 12 “Strong Buy” ratings, one “Moderate Buy” and nine “Holds.”
On February 9, Citi analyst Vikram Bagri raised Valero’s price target to $212, while maintaining a “Neutral” rating.
As of this writing, the stock is trading above the average price target of $193.95. The Street’s high price target of $220 implies a potential upside of 8.6% from current price levels.
As of the date of publication, Sohini Mondal had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com