Where Do Analysts’ Ratings for VLO Stand following Its Results?



Analysts’ ratings for VLO

Now, let’s look at analysts’ ratings for Valero Energy (VLO) following its 1Q17 earnings results. 

Valero has been rated by a total of 21 analysts. Of this total, 12 analysts (or 57%) have given the stock “buy” or “strong buy” ratings, nine (or 43%) have given it “hold” ratings, and none have given it “sell” or “strong sell” ratings. 

VLO’s mean target price of $72 per share implies a 9% rise from its current level. As analysts drill down the 1Q17 numbers, VLO could see changes in its ratings or target prices.

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Analysts’ ratings for other refiners

Valero’s peers HollyFrontier (HFC), Delek US Holdings (DK), and Western Refining (WNR) have been rated as “buys” by 29%, 33%, and 17% of analysts, respectively. Other downstream players such as PBF Energy (PBF) and Alon USA Energy (ALJ) have been called “buys” by 35% and 11% of analysts, respectively.

For exposure to small-cap value stocks, you can consider the iShares Russell 2000 Value ETF (IWN). The ETF also has ~5% exposure to energy sector stocks, including DK, WNR, and ALJ. If you’re looking for exposure to mid-cap stocks, however, you can consider the SPDR S&P MIDCAP 400 ETF (MDY). The ETF has ~3% exposure to energy sector stocks, including HFC and WNR.

In the next article, we’ll look at the change in Valero’s implied volatility following its 1Q17 earnings.


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