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Bull’s Eye Report: Valero (VLO)

Buy VLO at $44.35 or under


At, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Valero Energy Corp VLO Oil & Gas Refining & Marketing 5.7 +24.52% $42.19

Why We Like The Stock:

Valero Energy Corp. (NYSE:VLO) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in one of the top-performing sub-industries of 2013, oil & gas refining & marketing. VLO was Tuesday’s Bull’s Eye pick, though the stock looks even more attractive after a few more days of forming a solid base at $44. Refiners continue to look extremely attractive in the short-term at current prices. Along with VLO, Western Refining (NYSE:WNR), HollyFrontier (NYSE:HFC), and Tesoro (NYSE:TSO) all look great, though we like VLO a bit better on a long-term basis. Currently, the stock has pulled back off of its early March highs, continues to base above the 50-day moving average despite the recent volatility in the market, and seems to be back on the upswing. With an immediate upside to ~$49 and support at $42, VLO is once again a compelling buy this morning.

We Would Be Buyers:

At the current price (~$44.35), or on a pullback to $43.

Company Profile:

Valero Energy Corporation is an independent petroleum refining and marketing company. Valero’s refineries can produce conventional gasoline’s, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products, as well as a slate of premium products, including conventional blendstock for oxygenate blending and reformulated gasoline blendstock for oxygenate blending, gasoline meeting the specifications of the California Air Resources Board, a diesel fuel, and low-sulfur and ultra-low-sulfur diesel fuel. It also owns 10 ethanol plants in the central plains region of the United States with a combined ethanol nameplate production capacity of about 1.1 billion gallons per year. It operates in three business segments: refining, ethanol, and retail. On October 1, 2011, it acquired the Meraux Refinery and related logistics assets from Murphy Oil Corporation. On August 1, 2011, it acquired 100% interest of Chevron Limited from a subsidiary of Chevron Corporation.

Stock Rating: 5.7

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Valero – Last Three Months


Valero – Last 12 Months


Valero – Last Five Years


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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

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