Valero stock gives positive returns
Since April 3, 2017, Valero Energy (VLO) stock has risen 1.8%. Its peers have also risen in the same period. In 1Q17, VLO was pressured due to the unstable crack conditions and record inventory levels in the industry.
In the second quarter, Valero stock rose again. VLO’s refining margin indicators rose in three of the four regions quarter-over-quarter in 2Q17, hinting at an improving refining margin environment. This could lead to an increase in its refining earnings in 2Q17 over 1Q17.
Valero’s 1Q17 earnings surpassed estimates, which further supported its stock price. Valero has its expansion activities in place to grow its earnings in the coming years. For more on this topic, please read Valero Energy’s Refining Growth: Outlook Implications.
Further, the EIA (U.S. Energy Information Administration) reported a fall in gasoline inventory for the week ended July 7, 2017, over the week ended March 31, 2017. However, distillate inventory rose during the same period.
Since April 3, Valero stock’s rise could be due to an increase in refining margin indicators, improved 1Q17 earnings, and the fall in gasoline inventory levels in the industry.
Peers’ stock performance
Since April 3, 2017, VLO’s peers Phillips 66 (PSX), Delek US Holdings (DK), and Marathon Petroleum (MPC) rose 4%, 8%, and 9%, respectively. However, Tesoro (TSO) stock surpassed its peers when it rose 20% in the same period.
The SPDR S&P 500 ETF (SPY) has risen 4.2% since April 3. Valero stock, with its 1.8% gain in the same period, underperformed SPY.
Move on to the next part to see where VLO’s moving averages stand before its earnings release.