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

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 lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Valero Energy Corporation fell $1.29 (-3.2%) to $38.96 on average volume. Throughout the day, 9,357,084 shares of Valero Energy Corporation exchanged hands as compared to its average daily volume of 10,754,700 shares. The stock ranged in price between $38.36-$40.26 after having opened the day at $40.02 as compared to the previous trading day's close of $40.25. Other companies within the Energy industry that declined today were: Constellation Energy Partners ( CEP), down 8.0%, Oiltanking Partners ( OILT), down 7.1%, Camac Energy ( CAK), down 6.8% and Lone Pine Resources ( LPR), down 6.4%.
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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 $22.2 billion and is part of the basic materials sector. The company has a P/E ratio of 7.1, below the S&P 500 P/E ratio of 17.7. Shares are up 18.0% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Valero Energy Corporation a buy, no analysts rate it a sell, and 5 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Torch Energy Royalty ( TRU), down 14.8%, Endeavour International ( END), down 8.1%, Magnum Hunter Resources Corportion ( MHR), down 7.8% and Swift Energy Company ( SFY), down 6.7% , were all gainers within the energy industry with Concho Resources ( CXO) being today's featured energy industry leader.

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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