L'intérêt à découvert pour Valero Energy donne aux investisseurs une idée du degré auquel les investisseurs parient sur la baisse de l'action de Valero Energy. Les données sur l'intérêt à découvert sont mises à jour toutes les deux semaines.

Valero Energy (NYSE:VLO) Stock, Rapport sur les intérêts à découvert

Valero Energy

Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which has the capacity to produce 1.2 billion gallons per year of renewable diesel.

Valero Energy Corp

Vallourec SA

Across the recent three months, 13 analysts have shared their insights on Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>), expressing a variety of opinions spanning from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">7</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">1</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">6</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">1</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $151.62, a high estimate of $176.00, and a low estimate of $123.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 8.94%. 
<img src="https://www.benzinga.com/files/images/story/2024/1731351609_0.png" alt="price target chart" />
<h2>Exploring Analyst Ratings: An In-Depth Overview</h2>
The perception of Valero Energy by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Theresa Chen</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$140.00</td>
<td>$146.00</td>
</tr>
<tr>
<td>Jason Gabelman</td>
<td>TD Cowen</td>
<td>Lowers</td>
<td>Buy</td>
<td>$140.00</td>
<td>$145.00</td>
</tr>
<tr>
<td>Vikram Bagri</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Buy</td>
<td>$176.00</td>
<td>$192.00</td>
</tr>
<tr>
<td>Jean Ann Salisbury</td>
<td>B of A Securities</td>
<td>Announces</td>
<td>Neutral</td>
<td>$150.00</td>
<td>-</td>
</tr>
<tr>
<td>Paul Cheng</td>
<td>Scotiabank</td>
<td>Lowers</td>
<td>Sector Outperform</td>
<td>$141.00</td>
<td>$173.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$165.00</td>
<td>$172.00</td>
</tr>
<tr>
<td>Phillip Jungwirth</td>
<td>BMO Capital</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$165.00</td>
<td>$175.00</td>
</tr>
<tr>
<td>Theresa Chen</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$146.00</td>
<td>$165.00</td>
</tr>
<tr>
<td>John Royall</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$151.00</td>
<td>$172.00</td>
</tr>
<tr>
<td>Ryan Todd</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$123.00</td>
<td>$169.00</td>
</tr>
<tr>
<td>Neil Mehta</td>
<td>Goldman Sachs</td>
<td>Lowers</td>
<td>Sell</td>
<td>$131.00</td>
<td>$149.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$171.00</td>
<td>$175.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$172.00</td>
<td>$165.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Valero Energy. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Valero Energy compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Valero Energy's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
For valuable insights into Valero Energy's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/VLO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Valero Energy analyst ratings.</a>
<h2>Get to Know Valero Energy Better</h2>
Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which has the capacity to produce 1.2 billion gallons per year of renewable diesel.
<h3>Valero Energy: A Financial Overview</h3>
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Challenges: Valero Energy's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -14.39%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.
Net Margin: Valero Energy's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.1% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Valero Energy's ROE excels beyond industry benchmarks, reaching 1.43%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Valero Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.59% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Valero Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.43.
<h2>What Are Analyst Ratings?</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings

Analyst Scoreboard: 13 Ratings For Valero Energy

Barclays analyst Theresa Chen maintains Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) with a Overweight and lowers the price target from $146 to $140.

News

Price Target

Barclays Maintains Overweight on Valero Energy, Lowers Price Target to $140

WIIM

ACDC

AESI

ARCH

AROC

CIVI

CTRA

DINO

GPOR

HNRG

INVX

KNTK

LBRT

MTDR

PARR

PTEN

SDRL

TALO

TRGP

USAC

WFRD

Shares of oil and fossil fuel companies are trading higher following the US presidential election. Investors may be weighing the potential impact of Donald Trump's energy policies on the sector.

This year&#8217;s <a href="https://www.benzinga.com/markets/esg/24/05/39012013/noaa-meteorologists-predict-aggressive-hurricane-season-what-it-means-for-home-depot-generac-other-s">hurricane season </a>is a deadly one for the eastern and Gulf Coast of the U.S. Several companies and ETFs could be affected by another tropical storm nearing the Gulf Coast.
The Storm: Tropical Storm Rafael, the 17th named storm of the 2024 season, formed in the Caribbean, <a href="https://www.nbcnews.com/weather/hurricanes/tropical-storm-rafael-forms-expected-hurricane-rcna178632">according</a> to NBC.
The storm passed by Jamaica on Tuesday. It is expected to strengthen into a hurricane on Tuesday near the Cayman Islands and pass over Western Cuba. From there, it will likely weaken into a tropical storm before making landfall near New Orleans. The path may change drastically before impacting the U.S.
The heaviest rain of up to 10 inches is expected in Jamaica.
Market Impacts: With a projected path in the Gulf of Mexico, Rafael could disrupt offshore oil and gas production, which could impact companies operating there.
Potentially affected stocks include major energy companies like Exxon Mobil Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>), Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), and Occidental Petroleum Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), and ETFs like SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) and Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>).
Storms in the Gulf of Mexico can also disrupt refining operations, which could impact refiners such as Marathon Petroleum Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>), Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) and Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>).
Construction companies like Vulcan Materials Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VMC#NYSE">VMC</a>) and Martin Marietta Materials Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLM#NYSE">MLM</a>) might benefit from increased demand for repairs and rebuilding.
Recent extreme weather activity is linked to climate change. Hurricanes, which will become even more frequent over time, may encourage homeowners to purchase home generators. Generac Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GNRC#NYSE">GNRC</a>) is the largest producer of home generators in the U.S.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41746843/bond-market-fear-gauge-soars-to-1-year-high-ahead-of-us-election-results-bond-vigil">Bond Market Fear Gauge Soars To 1-Year High Ahead Of US Election Results: &#8216;Bond Vigilantes Have Been Voting Early&#8217;</a></li>
</ul>
Photo: Tropical Storm Rafael, 11.5.2024. Courtesy NOAA/Public Domain

Equities

Sector ETFs

Commodities

ETFs

GNRC

Tropical Storm Rafael Could Make US Landfall: 11 Stocks, ETFs To Watch

Joseph W. Gorder to Retire as Executive Chairman and Director
CEO and President R. Lane Riggs to Assume Chairman Position
Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>, "Valero"))) today announced that Joseph W. Gorder has chosen to retire as Executive Chairman and as a member of the Board effective as of the close of business on December 31, 2024. R. Lane Riggs, Valero's Chief Executive Officer and President, and member of the Board, has also been elected to the additional position of Chairman of the Board effective as of such date.

Management

Valero Announces Board Leadership Transition; Joseph W. Gorder To Retire As Executive Chairman And Director; CEO And President R. Lane Riggs To Assume Chairman Position

GPRE

RCON

Shares of oil and gas companies are trading lower. The sector may possibly be under pressure after BP reported a Q3 revenue miss, lower refining margins and weak oil trading results.

Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) has outperformed the market over the past 15 years by 2.05% on an annualized basis producing an average annual return of 14.17%. Currently, Valero Energy has a market capitalization of $41.56 billion. 
Buying $1000 In VLO: If an investor had bought $1000 of VLO stock 15 years ago, it would be worth $7,386.20 today based on a price of $129.71 for VLO at the time of writing.
<h3>Valero Energy's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1730125817_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Trading Ideas

If You Invested $1000 In This Stock 15 Years Ago, You Would Have $7,400 Today

In the latest quarter, 12 analysts provided ratings for Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>), showcasing a mix of bullish and bearish perspectives.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Valero Energy, revealing an average target of $152.58, a high estimate of $176.00, and a low estimate of $123.00. Highlighting a 9.37% decrease, the current average has fallen from the previous average price target of $168.36. 
<img src="https://www.benzinga.com/files/images/story/2024/1729886429_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
The standing of Valero Energy among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Jason Gabelman</td>
<td>TD Cowen</td>
<td>Lowers</td>
<td>Buy</td>
<td>$140.00</td>
<td>$145.00</td>
</tr>
<tr>
<td>Vikram Bagri</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Buy</td>
<td>$176.00</td>
<td>$192.00</td>
</tr>
<tr>
<td>Jean Ann Salisbury</td>
<td>B of A Securities</td>
<td>Announces</td>
<td>Neutral</td>
<td>$150.00</td>
<td>-</td>
</tr>
<tr>
<td>Paul Cheng</td>
<td>Scotiabank</td>
<td>Lowers</td>
<td>Sector Outperform</td>
<td>$141.00</td>
<td>$173.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$165.00</td>
<td>$172.00</td>
</tr>
<tr>
<td>Phillip Jungwirth</td>
<td>BMO Capital</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$165.00</td>
<td>$175.00</td>
</tr>
<tr>
<td>Theresa Chen</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$146.00</td>
<td>$165.00</td>
</tr>
<tr>
<td>John Royall</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$151.00</td>
<td>$172.00</td>
</tr>
<tr>
<td>Ryan Todd</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$123.00</td>
<td>$169.00</td>
</tr>
<tr>
<td>Neil Mehta</td>
<td>Goldman Sachs</td>
<td>Lowers</td>
<td>Sell</td>
<td>$131.00</td>
<td>$149.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$171.00</td>
<td>$175.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$172.00</td>
<td>$165.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Valero Energy. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Valero Energy compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Valero Energy's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Valero Energy's market position. Stay informed and make well-informed decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/VLO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Valero Energy analyst ratings.</a>
<h2>Delving into Valero Energy's Background</h2>
Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which has the capacity to produce 1.2 billion gallons per year of renewable diesel.
<h3>A Deep Dive into Valero Energy's Financials</h3>
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Challenges: Valero Energy's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.06%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.
Net Margin: Valero Energy's net margin excels beyond industry benchmarks, reaching 2.54%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Valero Energy's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.41%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Valero Energy's ROA excels beyond industry benchmarks, reaching 1.39%. This signifies efficient management of assets and strong financial health.
Debt Management: Valero Energy's debt-to-equity ratio is below the industry average at 0.42, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

In-Depth Examination Of 12 Analyst Recommendations For Valero Energy

TD Cowen analyst Jason Gabelman maintains Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) with a Buy and lowers the price target from $145 to $140.

TD Cowen Maintains Buy on Valero Energy, Lowers Price Target to $140

Citigroup analyst Vikram Bagri maintains Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) with a Buy and lowers the price target from $192 to $176.

Citigroup Maintains Buy on Valero Energy, Lowers Price Target to $176

Tech stocks outperformed on Thursday, driven by Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), which skyrocketed 18% in midday trading following stronger-than-<a href="https://www.benzinga.com/news/24/10/41515376/tesla-to-rally-more-than-24-here-are-10-top-analyst-forecasts-for-thursday">expected quarterly financial results. </a>
The electric vehicle giant is on track for its best session since March 2021.
Despite Tesla&#8217;s spectacular rally, broader market sentiment remained cautious, reflecting recent trends of subdued risk appetite.
In macroeconomic news, weekly jobless claims dropped significantly, coming in below expectations and suggesting ongoing resilience <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41517353/jobless-claims-fall-more-than-expected-continuing-benefits-surge-to-nearly-3-year-h">in the labor market. </a>
Meanwhile, private sector activity surveys revealed better-than-expected conditions in both services and manufacturing this month and a further <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41520604/us-private-sector-growth-remains-strong-in-october-price-pressures-now-consistent">reduction in price pressures. </a>
Both the S&amp;P 500 and Russell 2000 traded flat, while the Dow Jones fell 0.6%. The consumer discretionary sector led gains, heavily influenced by Tesla's stellar performance.
The U.S. dollar softened slightly, and Treasury yields edged lower, easing pressure on gold. The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) rose 0.6%.
Oil prices dropped 1%, heading for a second consecutive day of losses. Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) gained 1.8%. 
<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %change</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,164.58</td>
<td>0.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,796.37</td>
<td>0.0%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,207.55</td>
<td>0.0% </td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,259.72</td>
<td>-0.6% </td>
</tr>
</tbody>
</table>
</figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent102224&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) flattened at $577.32.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.7% to $422.33.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.4% to $489.81.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) inched 0.1% down to $218.88.</li>
<li>The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, up by 2.5%, predominately affected by Tesla. The Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) lagged, down 1.4%.</li>
</ul>
<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>
Stocks reacting to earnings results include: 
<ul>
<li>T-Mobile US Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>), up over 4%, </li>
<li>International Business Machines Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>), down over 6%,</li>
<li>ServiceNow Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>), up over 5%,</li>
<li>Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), up 3.8%,</li>
<li>Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), down over 9%,</li>
<li>United Rentals Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/URI#NYSE">URI</a>), down 2%,</li>
<li>Las Vegas Sands Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>), up 1.3%,</li>
<li>Raymond James Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RJF#NYSE">RJF</a>), up over 7%,</li>
<li>S&amp;P Global Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPGI#NYSE">SPGI</a>), down 2.4%,</li>
<li>Union Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>), down 5%, </li>
<li>Honeywell International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HON#NASDAQ">HON</a>), down 4.4%, </li>
<li>KKR &amp; Co. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>), up 3.4%, </li>
<li>United Parcel Service Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>), up 5.1%, </li>
<li>Carrier Global Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CARR#NYSE">CARR</a>), down 7%, </li>
<li>Nasdaq Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NDAQ#NASDAQ">NDAQ</a>), up 1.6%, </li>
<li>Valero Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>), up 0.7%, </li>
<li>CBRE Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CBRE#NYSE">CBRE</a>) up by over 9%, </li>
<li>Dow Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOW#NYSE">DOW</a>), down 1.1%,</li>
</ul>
<ul>
<li>Southwest Airlines Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) dropped over 3%, despite posting better-than-expected results and reaching a deal with Elliott Investment Management on the board&#8217;s composition. However, the CEO warned of potential delivery delays due to Boeing Co.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) ongoing machinist strike.</li>
</ul>
Large-cap companies slated to report results after the close include Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), Ameriprise Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMP#NYSE">AMP</a>), Edward Lifesciences Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EW#NYSE">EW</a>), ResMed Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RES#NYSE">RES</a>), DexCom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DXCM#NASDAQ">DXCM</a>), and Deckers Outdoor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DECK#NYSE">DECK</a>). 
Read Next:
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<li><a href="https://www.benzinga.com/news/earnings/24/10/41515619/delivery-giant-ups-breaks-revenue-miss-streak-after-10-quarters-stock-soars">Delivery Giant UPS Breaks Revenue-Miss Streak After 10 Quarters, Stock Soars</a></li>
</ul>
Image created using artificial intelligence via MidJourney .

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Select Sector SPDR-Consumer Discretionary

Tech Stocks Rebound, Tesla Marks Best 1-Day Gain Since March 2021, Gold Rises As Treasury Yields Ease: What's Driving Markets Thursday?

Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>)&nbsp;shares are trading higher after the company reported third-quarter FY24 revenues of $32.876 billion, beating <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/b41511863/valero-energy-reports-third-quarter-2024-results" rel="noreferrer noopener">the consensus of&nbsp;$31.131 billion</a>.
The Refining segment posted an operating income of $565 million, down from $3.4 billion in the prior year quarter.
During this quarter, refining throughput averaged 2.9 million barrels per day amid significant maintenance activities.
Operating income from the Ethanol segment stood at $153 million, down from $197 million in the third quarter of 2023.
Production volumes averaged 4.6 million gallons per day, up 255 thousand gallons per day compared to the previous year.
The Renewable Diesel segment recorded an operating income of $35 million, down from $123 million in the year-ago quarter.
Sales volumes averaged 3.5 million gallons per day during the quarter, up 552 thousand gallons per day Y/Y.
Adj. EPS&nbsp;of $1.14&nbsp;exceeded<a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener"> the consensus of $0.98</a>. Operating cash flow came in at $1.3 billion in the quarter. 
Valero returned $907 million to stockholders, comprising $342 million in dividends and $565 million worth of share repurchases.
Valero ended the quarter with $8.4 billion of total debt and $5.2 billion of cash and cash equivalents.
Lane Riggs, Valero's chief executive officer and president said, "The DGD SAF project was completed on schedule and under budget and is a testament to the strength of our project and operations teams,"
Investors can gain exposure to the stock via VanEck Oil Refiners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRAK#NYSE">CRAK</a>) and Invesco Energy Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXE#NYSE">PXE</a>).
Price Action: VLO shares are down 2.05% at $130.16 at the last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41387383/southwests-sustainable-fuel-push-deal-with-valero-set-to-fuel-chicago-midway-operations" target="_blank" rel="noreferrer noopener">Southwest&#8217;s Sustainable Fuel Push: Deal With Valero Set To Fuel Chicago Midway Operations</a></li>
</ul>
Photo: JHVEPhoto/Shutterstock.com

Earnings

CRAK

PowerShares ETF Trust Dynamic Energy Exploration & Production Port

Valero Energy Delivers Solid Q3: Ethanol, Renewable Diesel Volumes Rise

Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) reported quarterly earnings of $1.14 per share which beat the analyst consensus estimate of $0.98 by 16.33 percent. This is a 84.78 percent decrease over earnings of $7.49 per share from the same period last year. The company reported quarterly sales of $32.876 billion which beat the analyst consensus estimate of $31.131 billion by 5.60 percent. This is a 14.39 percent decrease over sales of $38.404 billion the same period last year.

Earnings Beats

Valero Energy Q3 2024 Adj. EPS $1.14 Beats $0.98 Estimate, Sales $32.876B Beat $31.131B Estimate

Southwest Airlines Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) shares are trading lower on Thursday. The company disclosed a sustainable aviation fuel (SAF) supply agreement with a subsidiary of Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>).
This two-year agreement aims to deliver sustainable aviation fuel to Chicago Midway International Airport (MDW) and marks the state&#8217;s largest announced SAF supply agreement.
As per the deal, Southwest Airlines will purchase a minimum of 3.6 million gallons of neat SAF—approximately 12 million gallons when blended—for its operations starting as early as the fourth quarter of 2024.
The airline also has the option to acquire up to 25 million gallons of neat SAF (around 84 million gallons blended) during the agreement&#8217;s term.
The neat SAF is expected to be produced from waste-based&nbsp;feedstocks, such as used cooking oil, <a target="_blank" href="https://www.benzinga.com//node/41384642" rel="noreferrer noopener">animal tallow, and distiller&#8217;s corn oil.</a>
This blended volume could account for up to 35% of Southwest&#8217;s jet fuel usage at MDW based on the previous year&#8217;s consumption.
Notably, Diamond Green Diesel, a joint venture between a Valero affiliate and Darling Ingredients Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAR#NYSE">DAR</a>), will supply the neat SAF.
SAF will necessitate collaboration across and beyond the value chain. With this SAF volume, Southwest can enhance access for corporate and cargo customers to promote the use of SAF in its operations.
This week, the company issued a response to&nbsp;Elliott Investment Management&#8217;s call for a<a target="_blank" href="https://www.benzinga.com/news/24/10/41339656/southwest-airlines-stock-is-rising-tuesday-whats-going-on" rel="noreferrer noopener"> special meeting of shareholders</a>.
&#8220;Elliott&#8217;s Special Meeting request is unnecessary and inappropriate considering the extreme nature of Elliott&#8217;s demands. The timing of Elliott&#8217;s request to apparently pursue Board control appears designed to maximize disruption of Southwest&#8217;s execution of its important business transformation underway as we approach one of the busiest travel periods of the year,&#8221; the company said in a statement.
Investors can gain exposure to the stock via&nbsp;U.S. Global Jets ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>) and ETF Opportunities Trust Cultivar ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/CVAR#BATS">CVAR</a>).
Price Action: LUV shares are down 2.45% at $30.15 at the last check Thursday.
Image by Around the World Photos via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/10/41336413/oil-prices-take-largest-plunge-in-over-a-year-as-israel-vows-to-spare-iranian-facilities-energy-stoc" target="_blank" rel="noreferrer noopener">Oil Prices Take Largest Plunge In Over A Year As Israel Vows To Spare Iranian Facilities: Energy Stocks Sink, Airlines, Cruise Lines Ral</a><a href="https://www.benzinga.com/markets/asia/24/10/41336413/oil-prices-take-largest-plunge-in-over-a-year-as-israel-vows-to-spare-iranian-facilities-energy-stoc" target="_blank" rel="noreferrer noopener">ly</a></li>
</ul>

CVAR

JETS

Southwest's Sustainable Fuel Push: Deal With Valero Set To Fuel Chicago Midway Operations

B of A Securities analyst Jean Ann Salisbury reinstates Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) with a Neutral and announces $150 price target.

Initiation

B of A Securities Reinstates Neutral on Valero Energy, Announces $150 Price Target

Supply from Valero is expected to deliver the highest volume of SAF announced to date in Illinois
DALLAS, Oct. 17, 2024 /PRNewswire/ -- <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4280280-1&amp;h=555240114&amp;u=http%3A%2F%2Fwww.southwest.com%2F%3Fsrc%3DPRPRPRNSUSTsafagr241017&amp;a=Southwest+Airlines+Co.">Southwest Airlines Co.</a>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) today announced a sustainable aviation fuel (SAF) supply agreement with Valero Marketing and Supply Company (Valero), a subsidiary of Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>), to bring SAF to Chicago Midway International Airport (MDW) in the state&#39;s largest announced SAF supply agreement.
As part of the two-year agreement, Southwest&reg; will purchase a minimum of 3.6 million gallons of neat SAF (about 12 million gallons blended) for use in its operations as early as Q4 2024, with the option to purchase up to 25 million gallons of neat SAF (about 84 million gallons blended) over the agreement&#39;s term. On a blended basis, this would represent up to 35% of Southwest&#39;s jet fuel out of MDW based on the carrier&#39;s usage in the last year.

Southwest Airlines Announces A Sustainable Aviation Fuel Supply Agreement With Valero Marketing And Supply Company, To Bring SAF To Chicago Midway International Airport In The State's Largest Announced SAF Supply Agreement

Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) has outperformed the market over the past 15 years by 1.73% on an annualized basis producing an average annual return of 13.59%. Currently, Valero Energy has a market capitalization of $43.64 billion. 
Buying $100 In VLO: If an investor had bought $100 of VLO stock 15 years ago, it would be worth $677.32 today based on a price of $136.21 for VLO at the time of writing.
<h3>Valero Energy's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729015227_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In Valero Energy 15 Years Ago Would Be Worth This Much Today

Oil prices took a sharp dive on Tuesday, tumbling over 5% in morning trading in New York, as geopolitical tensions in the Middle East slightly eased after Israeli Prime Minister Benjamin Netanyahu reportedly pledged that Iran's crude oil infrastructure would be spared from <a href="https://www.benzinga.com/news/24/10/41321699/oil-prices-drop-after-netanyahu-says-israel-will-attack-military-not-oil-or-nuclear-targets-in-iran">any potential retaliatory strikes. </a>
West Texas Intermediate (WTI) crude, the U.S. benchmark, tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), nosedived to $70 per barrel, down more than 5% as of 10 a.m. ET. This marks the steepest one-day decline in over a year.
The selloff followed a Monday report from The Washington Post that said that Netanyahu assured the Biden administration that Israel would avoid targeting Iranian oil and nuclear facilities in any retaliatory military actions.
The assurance suggested a narrower scope of potential conflict, reducing fears of widespread supply shocks in the global oil market.
Market analysts had previously warned that an Israeli strike on Iran&#8217;s oil infrastructure could send crude prices skyrocketing by $20 per barrel, highlighting concerns that Tehran would retaliate by attacking oil installations throughout the Gulf region, potentially triggering a broader energy crisis.
<h3 class="wp-block-heading">Crude Suffers Worst Drop In Over 1 Year As Middle East Supply Fears Recede</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="469" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1024x469.png" alt="" class="wp-image-596308" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1024x469.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-300x137.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-768x351.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1536x703.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118.png 1884w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image: <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent101524&amp;t=be2bearmibe3na1">Benzinga Pro</a></figcaption></figure>
<h3 class="wp-block-heading">Energy Sector Tanks: US Oil Giants Lead Declines</h3>
The immediate reaction in the markets was swift: U.S. energy stocks plunged, while airlines and cruise lines — typically sensitive to fuel prices — enjoyed a sharp relief rally.
The energy sector was one of the biggest losers on the day. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks major U.S. energy companies, slid 2.8%, setting up for its worst day since late April. 
АРА Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>), Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) and Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) were the worst performers within the XLE ETF, with declines of about 4%.
Companies involved in upstream exploration and production were hit even harder, with the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) falling 3.1%. Talos Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TALO#NYSE">TALO</a>), Kosmos Energy Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KOS#NYSE">KOS</a>) and Crescent Energy Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRGY#NYSE">CRGY</a>) each tumbled by over 4%. 
Downstream oil service providers also struggled, with the VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) dropping 3.6%. Major oilfield services companies like Schlumberger N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) and Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) both fell about 3%, while Transocean Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIG#NYSE">RIG</a>) underperformed, down 5%. 
<h3 class="wp-block-heading">Airlines And Cruise Lines Rally: Lower Fuel Costs, Strong Earnings Expectations Lift Sentiment</h3>
While energy stocks suffered, sectors reliant on cheaper fuel prices thrived. Airlines and cruise lines, in particular, were among the best performers within the S&amp;P 500 as the prospect of lower oil prices offered some relief.
Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) surged 4.3%, while Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) jumped 5.3%. 
Goldman Sachs recently raised its price target on Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) from $195 to $220, anticipating strong earnings momentum. Similarly, NCLH saw its price target lifted from $22 to $24.
In the airline space, American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) rallied 3.5%, United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) gained 1.2%, reaching its highest level since February 2020, and Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) rose 1.3%.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41331839/financial-sector-hits-record-highs-as-goldman-sachs-bank-of-america-citi-beat-q3-ea">Financial Sector Hits Record Highs As Goldman Sachs, Bank of America, Citi Beat Q3 Earnings Expectations</a></li>
</ul>
Photo via Shutterstock.

Asia

Politics

Markets

Movers

CRGY

FANG

NCLH

Oil Prices Take Largest Plunge In Over A Year As Israel Vows To Spare Iranian Facilities: Energy Stocks Sink, Airlines, Cruise Lines Rally

EONR

EQNR

INDO

SHEL

Shares of energy stocks are trading lower as oil prices fall after Israel reportedly indicated it could target military sites in Iran but not oil or nuclear targets.

Scotiabank analyst Paul Cheng maintains Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) with a Sector Outperform and lowers the price target from $173 to $141.

Scotiabank Maintains Sector Outperform on Valero Energy, Lowers Price Target to $141

Commodity Roundup: Oil prices down, gold steadies as focus shifts to Fed rate decision

The Valero Downtrend Post Q3 Earnings Presents An Opportunity

In a report released today, Theresa Chen from Barclays maintained a Buy rating on Valero Energy (VLO – Research Report), with a price target of $14...

Barclays Sticks to Their Buy Rating for Valero Energy (VLO)

Barclays analyst Theresa Chen lowered the firm's price target on Valero (VLO) to $140 from $146 and keeps an Overweight rating on the shares. Publi...

Valero price target lowered to $140 from $146 at Barclays

The energy market benefits investors significantly with its potential for long-term growth. Amid this backdrop, investing in energy stocks like Exxon Mobil (XOM), Valero Energy (VLO), and Chevron (CVX), which pay high dividends, could be a savvy choice. Keep reading... High-dividend energy companies benefit investors with additional income from regular dividends along with wide long-term potential.
So, it could be wise to invest in high-dividend energy stocks Exxon Mobil Corporation (<a href="https://stocknews.com/stock/XOM/">XOM</a>), Valero Energy Corporation (<a href="https://stocknews.com/stock/VLO/">VLO</a>), and Chevron Corporation (<a href="https://stocknews.com/stock/CVX/">CVX</a>), having long-term potential.
The global energy market is one of the most integral segments of the worldwide economy, owing to its significant contribution. The energy market is also an ideal alternative for investment purposes, as most energy-producing companies yield high dividends that benefit investors.
Benchmark oil prices jumped sharply in early October amid the potential of oil supply risks due to escalating tensions between Israel and Iran, fueling fears of a broader Middle East conflict and disruptions to Iranian exports. The <a href="https://www.iea.org/reports/oil-market-report-october-2024">world oil demand</a> is expected to expand to 900 kb/d in 2024 and close to 1 mb/d in 2025.
Further, with contributing factors like increasing investment in the energy and power sector by government bodies, rising demand for oil in the commercial and residential sector, technological advancements, and growing investments in upstream projects, the global oil exploration and production market is expected to grow to <a href="https://www.cognitivemarketresearch.com/oil-exploration-and-production-market-report?srsltid=AfmBOorsbgI8pe0MuuHLv7Lxe_a5zQmFpSTAx8WUfXVQIU5Gyr9VnhRP">reach around $5.12 trillion by 2031</a>, at a CAGR of 5.2%.
Therefore, high-dividend energy stocks have a high potential to deliver stability and less volatility compared to other stocks, given the market conditions. The following well-established energy companies with stable earnings, rewarding dividend payouts, and long-term potential are suitable portfolio additions for investors.
Considering the industry's conducive trends, let's delve into the fundamentals of the top <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> stocks, beginning with number 3.
Stock #3: Exxon Mobil Corporation (<a href="https://stocknews.com/stock/XOM/">XOM</a>)
XOM is engaged in the exploration and production of crude oil and natural gas internationally. The company operates through Upstream; Energy Products; Chemical Products; and Specialty Products segments.
On November 1, XOM declared a fourth-quarter dividend of $0.99 per share, reflecting an increase of 4%, to be paid on December 10, 2024, to shareholders of record at the close of business on November 14, 2024.
XOM pays an annual dividend of $3.96, which equates to a yield of 3.27% at the current share price. Its four-year average dividend yield is 4.35%. And the company's dividend payouts have increased at a CAGR of 3% over the past three years. XOM has raised its dividends for 25 consecutive years.
On October 10, XOM secured the largest carbon dioxide (CO2) storage lease site in the U.S. The site, which expands over 271,000 acres, complements XOM's onshore CO2 storage portfolio development and further solidifies the U.S. Gulf Coast as a leader in carbon capture and storage (CCS).
On September 4, His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, witnessed the signing of an agreement under which ADNOC acquired a 35% equity stake in XOM's proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.
The agreement reflects a significant investment in U.S. energy production and the global energy transition. It will support companies' net zero ambitions, accelerate the decarbonization of hard-to-abate sectors, and cater to the growing demand for low-carbon hydrogen and ammonia.
XOM's total revenues and other income came in at $90.02 billion for the third quarter that ended September 30, 2024. Net income attributable to ExxonMobil amounted to $8.61 billion, while its <a href="https://www.investopedia.com/terms/e/eps.asp">EPS</a> was $1.92 for the quarter, respectively.
Furthermore, the company's total assets were $461.92 billion as of September 30, 2024, compared to $376.32 billion as of December 31, 2023.
Street expects XOM's revenue for the fourth quarter (ending December 2024) to grow 7.1% year-over-year to $90.37 billion. For the fiscal year 2024, the company's revenue is expected to grow 3.1% year-over-year to $355.25 billion. Moreover, the company surpassed the consensus revenue and EPS estimates in three of the trailing four quarters.
Over the past six months, XOM's stock has gained 4.3% and 17.7% over the past year to close the last trading session at $121.11.
XOM's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its robust outlook. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
XOM has a B grade for Quality, Momentum, and Stability. It is ranked #38 out of 77 stocks in the <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> industry.
In addition to the POWR Ratings we've stated above, we also have other XOM ratings for Sentiment, Growth, and Value. Get all XOM ratings <a href="https://stocknews.com/stock/XOM/">here</a>.
Stock #2: Valero Energy Corporation (<a href="https://stocknews.com/stock/VLO/">VLO</a>)
VLO manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products internationally. The company operates in Refining; Renewable Diesel; and Ethanol segments.
On October 29, VLO's Board of Directors declared a regular quarterly cash dividend on common stock of $1.07 per share. The dividend will be paid on December 20, 2024, to holders of record at the close of business on November 20, 2024.
VLO's annual dividend payout of $4.28 translates to a yield of 3.13% at the current share price. Its four-year average dividend yield is 4%. Also, the company's dividend payouts have grown at 3.9% CAGR over the past five years.
During the third quarter, which ended September 30, 2024, VLO posted revenues of $32.88 billion, and its operating income was $507 million for the same quarter. Also, adjusted net income attributable to Valero Energy Corporation stockholders and EPS came in at $364 million and $1.14 for the quarter, respectively.
Street expects VLO's EPS for the second quarter (ending June 2025) to increase 16.9% year-over-year to $3.17. Its EPS for the fiscal year 2025 is expected to increase 18.5% year-over-year to $10.19. Furthermore, the company has topped the consensus EPS estimates in all of the trailing four quarters.
Over the past year, VLO's stock has gained 12.4% to close the last trading session at $136.69.
VLO's sound fundamentals are reflected in its POWR Ratings. The stock has a B grade for Quality. Within the Energy – Oil &amp; Gas industry, VLO is ranked #34 of 77 stocks.
<a href="https://stocknews.com/stock/VLO/">Click here</a> to access other ratings of VLO for Sentiment, Growth, Momentum, Stability, and Value.
Stock #1: Chevron Corporation (<a href="https://stocknews.com/stock/CVX/">CVX</a>)
CVX engages in integrated energy and chemicals operations internationally. The company operates through two segments, Upstream; and Downstream. The company explores, develops, produces, and transports crude oil and natural gas. It is also in the processing, liquefaction, transportation, and regasification of liquefied natural gas.
On November 1, CVE's Board of Directors declared a quarterly dividend of $1.63 per share, payable on December 10, 2024, to all holders of common stock at the close of business on November 18, 2024.
CVX pays an annual dividend of $6.52, which translates to a yield of 4.15% at the current share price. Its four-year average dividend yield is 4.15%. Moreover, the company's dividend payouts have increased at a CAGR of 6.8% over the past three years. CVX has raised its dividends for 36 consecutive years.
On October 1, CVX announced a strategic collaboration with Honeywell International Inc. (<a href="https://stocknews.com/stock/HON/">HON</a>) to develop advanced artificial intelligence (AI)-Assisted solutions that will assist operators in making decisions to enhance efficiency for refining processes and improve safety within the industrial automation space.
The strategic collaboration is aimed at enhancing refining operations, optimizing productivity, and increasing reliability to accelerate the journey toward autonomous operations.
During the third quarter that ended September 30, 2024, CVX reported total revenues and other income of $50.67 billion. Net earnings attributable to CVX totaled $4.49 billion and $2.48 per common share, up 1.2% and 2.1% from the prior year's quarter, respectively. Also, its free cash flow increased 12% year-over-year to $5.60 billion.
In addition, CVX's cash and cash equivalents and total assets came in at $4.70 billion and $259.23 billion as of September 30, 2024.
For the fourth quarter ending December 2024, street expects CVX's revenue to increase marginally year-over-year to $47.22 billion. The company's EPS for the same quarter is expected to be $2.48. Moreover, CVX surpassed the consensus EPS estimates in three of the trailing four quarters.
CVX's stock has surged 5.9% over the past month and 10.2% over the past year to close the last trading session at $156.93.
CVX's bright prospects are reflected in its POWR Ratings. CVX has a B grade for Quality, Momentum, and Stability. CVX is ranked #27 among the 77 stocks in the same industry.
<a href="https://stocknews.com/stock/CVX/">Click here</a> to access CVX's ratings for Sentiment, Growth, and Value.
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XOM shares were trading at $120.92 per share on Monday afternoon, down $0.19 (-0.16%). Year-to-date, XOM has gained 24.05%, versus a 27.17% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/xom-cvx-vlo-hon-3-high-dividend-energy-stocks-with-long-term-potential/>3 High-Dividend Energy Stocks With Long-term Potential</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 High-Dividend Energy Stocks With Long-term Potential

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