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Here's Why Hold Strategy is Apt for Valero (VLO) Stock Now
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Valero Energy Corporation (VLO - Free Report) has gained 8% in the past year, outpacing a rise of 3.8% of the composite stocks belonging to the industry.
What’s Favoring the Stock?
Valero, carrying a Zacks Rank #3 (Hold), is a best-in-class oil refiner involved in producing 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 where Valero has ownership interests have a combined throughput capacity of approximately 3.2 million barrels per day.
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 primarily are aiding the demand for renewable diesel, therefore 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 would allow it to return capital to shareholders and back growth projects.
Risks
However, rising operating expenses are hurting VLO’s bottom line. Being a premium refiner, the firm’s input cost is highly fluctuating, given the volatile pricing scenario of crude oil.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Global Partners is a leading operator of gasoline stations and convenience stores, having roughly 1,700 locations majorly in the Northeast. Over the past 60 days, Global Partners has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The royalty interest production figures of PHX MINERALS, for the last four reported figures, depict significant improvement. With new wells coming online in the prolific Haynesville Shale and Bakken plays, PHX MINERALS is witnessing a production increase in royalty volumes.
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Here's Why Hold Strategy is Apt for Valero (VLO) Stock Now
Valero Energy Corporation (VLO - Free Report) has gained 8% in the past year, outpacing a rise of 3.8% of the composite stocks belonging to the industry.
What’s Favoring the Stock?
Valero, carrying a Zacks Rank #3 (Hold), is a best-in-class oil refiner involved in producing 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 where Valero has ownership interests have a combined throughput capacity of approximately 3.2 million barrels per day.
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 primarily are aiding the demand for renewable diesel, therefore 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 would allow it to return capital to shareholders and back growth projects.
Risks
However, rising operating expenses are hurting VLO’s bottom line. Being a premium refiner, the firm’s input cost is highly fluctuating, given the volatile pricing scenario of crude oil.
Stocks to Consider
Better-ranked players in the energy space include Evolution Petroleum Corporation (EPM - Free Report) , Global PartnersLP (GLP - Free Report) and PHX MINERALS INC. (PHX - Free Report) . While Evolution Petroleum and Global Partners sport a Zacks Rank #1 (Strong Buy), PHX MINERALS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Global Partners is a leading operator of gasoline stations and convenience stores, having roughly 1,700 locations majorly in the Northeast. Over the past 60 days, Global Partners has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The royalty interest production figures of PHX MINERALS, for the last four reported figures, depict significant improvement. With new wells coming online in the prolific Haynesville Shale and Bakken plays, PHX MINERALS is witnessing a production increase in royalty volumes.