San Antonio, Texas-based Valero Energy Corporation (VLO) manufactures, markets and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States and internationally. The company has a market capitalization of $66.4 billion and operates through the refining, renewable diesel, and ethanol segments.
Companies with a market capitalization of $10 billion or more are usually called “large-cap stocks.” VLO fits into this category, with its market price exceeding this range, reflecting its significant size and influence in the oil and gas refining and marketing industry.
The stock hit a 52-week high of $221.95 yesterday and is currently trading 1.9% below that peak. VLO stock is up 23% over the past three months, outpacing the slight decline of the S&P 500 Index ($SPX) during the same time frame.
In addition, Valero Energy has attracted a wide market for a long time. The stock has gained 69.6% over the past 52 weeks, while the SPX has returned 16.5% over the same time frame.
VLO has been trading above its 200-day moving average since last year and above its 50-day moving average since early January, indicating bullish momentum.
VLO stock’s rally over the past year has been impressive. Strong operating margins and cash flows have laid a solid foundation for earnings, and over the past year, Valero has consistently beaten expectations and boosted shareholder returns through dividends and buybacks.
In fact, the company has paid dividends for 28 consecutive years, with a yield of 2.2% comfortably above the State Street SPDR S&P 500 ETF Trust’s ( SPY ) yield of 1.07%. Analysts are raising forward estimates as Wall Street heats up its profitability and capital discipline.
Geopolitics has added more – as the Middle East conflict disrupts regional supplies and key refining capacity onshore, US refiners like Valero are suddenly more valuable as diesel and gasoline prices rise faster than crude oil, and global threats tighten oil supplies. At the same time, Valero’s ability to handle heavy crude oil — including the restarted flow from Venezuela — gives it a strategic edge. Together, margin flexibility, geopolitical premium, and shareholder returns keep VLO ahead of the market.
