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Valero Energy Stock Fell 6% in the Past Month

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Mar. 7 2019, Published 8:57 a.m. ET

Valero Energy’s stock performance

Valero Energy (VLO) stock has provided negative returns in the past month. Delek US Holdings (DK) and Phillips 66 (PSX) have gained 7.5% and 2.4%, respectively.

Valero Energy stock has fallen 5.6% since February 5. The stock has underperformed the broad market indicator, the SPDR S&P 500 ETF (SPY). SPY has risen 2.2% during the same period.

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Moving averages

In the past month, Valero Energy stock has declined. The gap between Valero Energy’s ten-day moving average and 30-day moving average has narrowed. Valero Energy’s ten-day moving average, which was 5.9% above its 30-day moving average on February 5, is 0.2% below its 30-day moving average.

Why has Valero Energy stock fallen in the past month?

Valero Energy stock might have fallen sharply due to weakness in its regional crack indicators in the current quarter. So far in the first quarter, all four of Valero Energy’s regional crack indicators have fallen YoY (year-over-year). The US Gulf Coast crack indicator fell 45% YoY, the US Midcontinent crack indicator fell 11% YoY, and the US West Coast fell 36% YoY in the first quarter. The North Atlantic indicator has fallen 38% YoY in the current quarter. The declines in the regional crack indicators point to lower margins in these regions for the company. Lower margins could impact the company’s overall refining margin in the stated period.

In the past few weeks, the crack indicators have started recovering. If the uptrend in the crack indicators continues, it could increase Valero Energy stock in the next month.

Next, we’ll discuss HollyFrontier.

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