Valero Energy Corporation (VLO): Today's Featured Energy Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Valero Energy Corporation ( VLO) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day up 0.4%. By the end of trading, Valero Energy Corporation rose 68 cents (2.4%) to $28.88 on light volume. Throughout the day, 5.6 million shares of Valero Energy Corporation exchanged hands as compared to its average daily volume of nine million shares. The stock ranged in a price between $28.23-$28.97 after having opened the day at $28.32 as compared to the previous trading day's close of $28.20. Other companies within the Energy industry that increased today were: Equal Energy ( EQU), up 15.8%, Recon Technology ( RCON), up 11.9%, GeoGlobal Resources ( GGR), up 11.1%, and Longwei Petroleum Investment Holding Limite ( LPH), up 7.2%.
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Valero Energy Corporation operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Ethanol, and Retail. Valero Energy Corporation has a market cap of $15.86 billion and is part of the basic materials sector. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 34% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Valero Energy Corporation a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates Valero Energy Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, HKN ( HKN), down 21.3%, Torch Energy Royalty ( TRU), down 11.1%, Andatee China Marine Fuel Services Corporat ( AMCF), down 9.3%, and Compressco Partners ( GSJK), down 9.1%, were all laggards within the energy industry with Chesapeake Energy ( CHK) being today's energy industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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