Trade-Ideas LLC identified Valero Energy ( VLO) as a "dead cat bounce" (down big yesterday but up big today) 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 $507.9 million.
  • VLO has traded 1.8 million shares today.
  • VLO is up 3.1% today.
  • VLO was down 6.6% yesterday.

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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 3.7%. VLO has a PE ratio of 8. Currently there are 11 analysts that rate Valero Energy a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Valero Energy has been 6.2 million shares per day over the past 30 days. Valero Energy has a market cap of $31.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.06 and a short float of 3.1% with 1.99 days to cover. Shares are down 13.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Valero Energy as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels.
  • 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, VALERO ENERGY CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Compared to its closing price of one year ago, VLO's share price has jumped by 25.29%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, VLO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 32.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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