Is Valero Energy Stock Underperforming the Dow?
San Antonio, Texas-based Valero Energy Corporation (VLO) manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products worldwide. With a market cap of $40.2 billion, the company operates through Refining, Renewable Diesel, and Ethanol segments.
Companies worth $10 billion or more are generally labeled as “large-cap stocks”, and Valero Energy fits this criterion perfectly. The company owns 15 petroleum refineries and is one of the leading renewable fuels producers, with a growing presence in ethanol and renewable diesel, reflecting its commitment to sustainability alongside core refining operations.
Valero Energy currently trades 23.5% below its 52-week high of $167.78 recorded on July 31, 2024. VLO's stock has gained 1.9% over the past three months, surpassing the broader Dow Jones Industrials Average's ($DOWI) marginal rise.
Longer term, Valero Energy stock has surged 4.7% on a YTD basis, whereas DOWI has increased marginally. However, shares of VLO declined 17.6% over the past 52 weeks, notably underperforming the Dow Jones’ nearly 10% rise over the same time frame.
VLO stock has been trading above its 50-day moving average since early May. However, it has remained below its 200-day moving average since mid-August 2024.
Valero Energy’s stock prices fell 1% following the release of its mixed Q1 2025 results on Apr. 24. The company reported revenue of $30.3 billion, down 4.7% year-over-year, but still surpassed Street expectations by 6.3%. Its adjusted EPS fell sharply by 76.8% from the prior year to $0.89, though it came in well above the consensus estimate of $0.43. On a more positive note, the company raised its quarterly dividend by 5.6% compared to the year-ago quarter to $1.13 per share, showcasing its commitment to shareholders.
Compared to its rival, Marathon Petroleum Corporation (MPC) has outpaced VLO stock. MPC stock has soared 14.8% on a YTD basis and collapsed 8.9% over the past 52 weeks.
Among the 18 analysts covering the VLO stock, the consensus rating is a “Strong Buy.” Its mean price target of $145.83 suggests a 13.6% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.