Valero Energy Corp (NYSE:VLO): A Bullish Investment Perspective

Insider Monkey11-16

We came across a bullish thesis on Valero Energy Corp (VLO) on ValueInvestorsClub by Alejo Velez. In this article, we will summarize the bulls’ thesis on VLO. VLO’s stock was trading at $151 when this...

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VLO’s stock was trading at $151 when this...</p>\n\n<a href=\"https://finance.yahoo.com/news/valero-energy-corp-nyse-vlo-145640797.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Valero Energy Corp (NYSE:VLO): A Bullish Investment Perspective</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nValero Energy Corp (NYSE:VLO): A Bullish Investment Perspective\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-16 22:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/valero-energy-corp-nyse-vlo-145640797.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>We came across a bullish thesis on Valero Energy Corp (VLO) on ValueInvestorsClub by Alejo Velez. In this article, we will summarize the bulls’ thesis on VLO. VLO’s stock was trading at $151 when this...</p>\n\n<a href=\"https://finance.yahoo.com/news/valero-energy-corp-nyse-vlo-145640797.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0788109394.HKD","symbol_name":"BGF WORLD ENERGY \"A2\" (HKDHGD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/valero-energy-corp-nyse-vlo-145640797.html","article_id":"2483124725","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/EzVuSeww9h7W33JqaIs50w--~B/aD02MzA7dz05NzA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/insidermonkey.com/30d4f1a00a7ea790808c59580d3a24cb"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483124725","pubTimestamp":1731769000,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"We came across abullish thesis onValero Energy Corp  on ValueInvestorsClub by Alejo Velez. In this article, we will summarize the bulls’ thesis on VLO. VLO’s stock was trading at $151 when this thesis was published, vs. a closing price of $137.02 on November 12.VLO is one of the dominant leaders in the global refining industry which comprises complex refineries in the United States and the United Kingdom. With time, VLO has posted high returns despite the volatility of the oil industry. The company has been compounding at 15.5% annually since its IPO in 1997 and its dividend has grown by 15%, helping shareholders even through downturns.Recently, the energy sector’s transition to electric vehicles  threatens to reduce oil demand, with an expected decrease of 30-50% by 2050. Although this has its demerits, VLO has been able to adapt by taking advantage of the growing scarcity of refining capacity around the world.READ NEXT:8 Best Wide Moat Stocks to Buy Nowand30 Most Important AI Stocks ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0788109394.HKD":"BGF WORLD ENERGY \"A2\" (HKDHGD) ACC","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU0345780950.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) ACC","NYSE":"纽交所","LU0368265418.SGD":"Blackrock World Energy Fund A2 SGD-H","BK4588":"碎股","LU0266512127.USD":"摩根大通环球自然资源 A(acc)","LU0300736492.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) INC","LU0456854461.SGD":"JPMorgan Funds - Global Natural Resources A (acc) SGD","VLO":"瓦莱罗能源","LU0122376428.USD":"贝莱德世界能源基金A2","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","IE00B3CCJ963.GBP":"GUINNESS GLOBAL ENERGY \"C\" (GBP) ACC","LU0630314457.HKD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (HKD) ACC","IE00B2Q91V27.USD":"GUINNESS GLOBAL ENERGY \"C\" (USD) ACC","BK4138":"石油与天然气的炼制和营销","BK4202":"服装、服饰与奢侈品","IE00BGHQF524.EUR":"GUINNESS GLOBAL ENERGY \"C\" (EUR) ACC","NCI":"思宏国际","LU0345781412.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) INC","BK4585":"ETF&股票定投概念"},"translate_title":"瓦莱罗能源公司（纽约证券交易所股票代码：VLO）：看涨的投资前景","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VLO":1,"NYSE":1,"NCI":1},"content_text":"We came across a bullish thesis on Valero Energy Corp (VLO) on ValueInvestorsClub by Alejo Velez. In this article, we will summarize the bulls’ thesis on VLO. VLO’s stock was trading at $151 when this thesis was published, vs. a closing price of $137.02 on November 12.\nVLO is one of the dominant leaders in the global refining industry which comprises complex refineries in the United States and the United Kingdom. With time, VLO has posted high returns despite the volatility of the oil industry. The company has been compounding at 15.5% annually since its IPO in 1997 and its dividend has grown by 15%, helping shareholders even through downturns.\n\nRecently, the energy sector’s transition to electric vehicles (EVs) threatens to reduce oil demand, with an expected decrease of 30-50% by 2050. Although this has its demerits, VLO has been able to adapt by taking advantage of the growing scarcity of refining capacity around the world.\nGiant players such as Shell and BP have reduced the number of refineries, with 4.5 million barrels per day in capacity being shut down between 2020 and 2023. It could also offer the potential for stronger improvement in refining margins than the reductions in demand, which is a favorable picture for VLO’s successful, low-fixed-cost refineries.\nVLO's position as one of the largest global refiners is hard to replicate, as it boasts a high average Nelson Complexity Index (NCI) of 11.8. The replacement cost of the assets of each refinery is incredibly high, and it would cost approximately $70 billion to $118 billion to rebuild VLO's current assets, emphasizing their substantial intrinsic value.\nThe company seems undervalued and has an opportunity to generate high double-digit returns in the medium term since its stock is 35% below its fair value. VLO’s dividends and buybacks yielded a total return of about 7.4% per annum, further underlining its friendly shareholder approach.\nRisks such as the recent decline in the discount of heavy crude and the escalating pressure on fossil fuels regulation remain. However, a top-tier refiner with good cash flow generation potential like VLO is a good bet. Likewise, the expectations of steady demand for oil, more frequent refinery turn-offs, and slow new capacity are good signals.\nWhile we acknowledge the potential of VLO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.\nREAD NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.\nDisclosure: Stavros Tousios has no positions in the aforementioned stocks.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483124725"}