Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Valero Energy as such a stock due to the following factors:
- VLO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $411.6 million.
- VLO traded 10,202 shares today in the pre-market hours as of 9:22 AM.
- VLO is down 2% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VLO with the Ticky from Trade-Ideas. See the FREE profile for VLO NOW at Trade-Ideas
More details on VLO:
Valero Energy Corporation operates as an independent petroleum refining and marketing company in the United States, Canada, the Caribbean, the United Kingdom, and Ireland. It operates through two segments, Refining and Ethanol. The stock currently has a dividend yield of 2.7%. VLO has a PE ratio of 8.4. Currently there are 10 analysts that rate Valero Energy a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Valero Energy has been 8.3 million shares per day over the past 30 days. Valero Energy has a market cap of $30.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.88 and a short float of 4.1% with 2.97 days to cover. Shares are up 18.4% year-to-date as of the close of trading on Monday.
rates Valero Energy as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.97 is somewhat weak and could be cause for future problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, VALERO ENERGY CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 19.8%. Since the same quarter one year prior, revenues fell by 19.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Valero Energy Ratings Report.