Valero Energy Corporation [NYSE: VLO] shares went higher by 16.93% from its previous closing of 39.63, now trading at the price of $46.34, also adding 6.71 points. Is VLO stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 4.37 million contracts. Compared to the average trading volume of VLO shares, the company saw a far better performance. Moreover, the stock has a 383.19M float and a 13.16% run over in the last seven days. VLO share price has been hovering between 101.99 and 31.00 lately, and is definitely worthy of attention.
Valero Energy Corporation [NYSE:VLO]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Valero Energy Corporation [VLO], the latest average analyst recommendation we can see is from the quarter closing in lastQuarterMonth. On average, stock market experts give VLO an Buy rating. The average 12-month price forecast for this stock is $45.93, with the high estimate being $122.00, the low estimate being $54.00 and the median estimate amounting to $95.00. This is compared to its latest closing price of $39.63.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Valero Energy Corporation [VLO] is sitting at 4.73. This is compared to 1 month ago, when its average rating was 4.64.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on 04/23/2020.
Fundamental Analysis of Valero Energy Corporation [VLO]
Now let’s turn to look at profitability: with a current Operating Margin for Valero Energy Corporation [VLO] sitting at 3.50% and its Gross Margin at 4.30%, this company’s Net Margin is now 2.20. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 11.99, and its Return on Invested Capital has reached 7.87. Its Return on Equity is 11.30%, and its Return on Assets is 4.60%. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates VLO financial performance.
Turning to investigate this organization’s capital structure, Valero Energy Corporation [VLO] has generated a Total Debt to Total Equity ratio of 44.36. Similarly, its Total Debt to Total Capital is 30.73, while its Total Debt to Total Assets stands at 20.11. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 42.10, and its Long-Term Debt to Total Capital is 29.16.
What about valuation? This company’s Enterprise Value to EBITDA is 5.75 and its Total Debt to EBITDA Value is 1.57. The Enterprise Value to Sales for this firm is now 0.33, and its Total Debt to Enterprise Value stands at 0.20. Valero Energy Corporation [VLO] has a Price to Book Ratio of 1.76, a Price to Cash Flow Ratio of 6.99 and P/E Ratio of 7.84. These metrics all suggest that Valero Energy Corporation is more likely to generate a positive ROI.
Valero Energy Corporation [VLO] has 383.19M shares outstanding, amounting to a total market cap of 15.19B. Its stock price has been found in the range of 31.00 to 101.99. At its current price, it has moved down by -54.56% from its 52-week high, and it has moved up 49.48% from its 52-week low.
This stock’s Beta value is currently 1.89, which indicates that it is 16.76% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 42.08. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Valero Energy Corporation [VLO] a Reliable Buy?
Shares of Valero Energy Corporation [VLO], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.