At StateoftheMarkets.com, 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.
|Valero Energy||VLO||Oil & Gas Refining & Marketing||5.7||+24.52%||$42.19|
Why We Like The Stock:
Valero Energy (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. Yesterday’s Bull’s Eye pick was Western Refining (NYSE:WNR), which is also an Oil & Gas Refining & Marketing stock. We’re not trying to be redundant, it’s just that this sub-industry looks so attractive 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, based above the 50-day moving average, and seems to be back on the upswing. With an immediate upside to ~$49 and support at $42, VLO is a compelling buy this morning.
We Would Be Buyers:
At the current price (~$44.25), or on a pullback to $43.
Valero Energy Corp. (Valero) 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 Aug. 1, 2011, it acquired 100% interest of Chevron Limited from a subsidiary of Chevron Corporation.
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.
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.
Valero Energy – Last 3 Months
Valero Energy – Last 12 Months
Valero Energy – Last 5 Years