Valero on Tuesday reported earnings and revenue that exceeded analysts' estimates for the 2016 third quarter.
The oil refiner said adjusted earnings were $1.24 per share, which surpassed analysts' projections of 93 cents per share. Revenue came in at $19.65 billion, above Wall Street's estimated $16.62 billion.
Oil/gas refiner Valero had a big surge this week on very high turnover. Perhaps after a bit of a respite we may see this stock continue upward.
After bottoming in early July, this stock has been making higher highs and higher lows to nearly match the May high, which was the right side of a bearish head/shoulders pattern.
The downtrend line was broken after a fierce rally in August, some sideways action and a scary drop in October.
The recent volume to the upside was positive, and we like to follow stocks with good relative strength. That is the case here, and we also have a strong moving average convergence divergence (MACD) buy signal. A test of the September high is likely next, and that could be a good buying chance.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Valero as a Hold with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, the team also finds weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: VLO