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NYSE:VLO

Valero Energy Corp (VLO)

236.29
-0.01 (0.00%)
as of Jun 18, 2026, 11:31:03 pm Market Open.
41 watching
0
DON'T BUY
While oil price has been going up, demand has not. This one is not attractive enough over the long term to be in it.
COMMENT
Refiners have had a very challenging period. Going forward there are other opportunities to put your money, as he doesn't see a dramatic recovery in the sector.
HOLD
Crack spreads are not moving up. Can refine many grades of crude but they don't get paid for this. Can't see any upside.
COMMENT
Largest independent refinery/gas marketing in North America. Margins are squeezed and it is not profitable to be in this business. Refineries are up for sale or are being closed so in the long run this will be good as capacity comes down.
DON'T BUY
Largest independent oil refiner and marketer in North America. Don't own oil wells. They buy oil, refine and sell through their own gas stations or wholesale it out. Dependent on margins that the market gives them at the time. In the last year or so, it has not been a great business to be in. You have to watch what the margins are.
COMMENT
Refiners tend to do a little bit better in the summer. If you expect energy prices to hold these levels and work higher, you will likely do better in a producer rather than a refiner.
BUY
His model price is $34.87, a 75% positive differential.
COMMENT
Crack spread has been going up nicely from $4 to about $15 in the last 3 weeks. Even though this company is lagging other companies he wouldn't worry about it. One of the biggest and most liquid and will play catch-up. If the crack spread narrows, the price of the stock will drop again.
BUY
Refinery and makes its money from the crack spread. Gasoline just made a reverse head and shoulders pattern implying that gasoline/heating oil prices are starting to move very strongly relative to crude oil. Very positive fundamentally. Stock looks like it has been oversold. Has a good chance of getting close to its breakdown point of $46.
DON'T BUY
Started to close some capacity at some of their refineries because the crack spreads have not been favourable. This is why the stock price has come down. Best in class as far as refineries are concerned but this is not the right time.
DON'T BUY
Had a little bit of positive news on draws on US inventory today but it is hard to be bullish on refiners. Catalytic spreads are way down. You'll have to see a recovery by the consumer first.
DON'T BUY
Refineries are almost structured to be trading vehicles rather than long-term holds. Trading is tough at the best of times, let alone these times.
HOLD
Right now you don't want to be buying independent refineries. There are a lot of heavy oil refineries under development that are going to come out globally. If you own, Hold until the heating season and the early parts of the winter, as there is some seasonality in the share price.
BUY
One of the largest refiners in the US. Benefiting right now because of falling oil prices. This is a stock that he was looking at but bought Marathon Oil (MRO-N) instead.
COMMENT
Refiners have been hit pretty hard. With the price of oil going down, the market should be bullish on refiners but he feels oil will hold at $100. This is a value play and could be good as a long-term play.
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