Valero Energy Corporation (VLO), headquartered in San Antonio, Texas, manufactures, markets, and distributes petroleum-based and low-carbon liquid transportation fuels and petrochemical products. Valued at $90.7 billion by market cap, the company produces conventional gasoline, diesel, jet fuel, heating oil, asphalt, feedstocks, aromatics, and crude oil under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands.
Shares of this largest independent refiner have significantly outperformed the broader market over the past year. VLO has gained 145.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.9%. In 2026, VLO stock is up 99%, surpassing SPX’s 12.9% rise on a YTD basis.
Zooming in further, VLO’s outperformance is also apparent compared to VanEck Oil Refiners ETF (CRAK). The exchange-traded fund has gained about 71.8% over the past year. Moreover, VLO’s returns on a YTD basis outshine the ETF’s 52.7% gains over the same time frame.
VLO has delivered significant outperformance, driven by expanding refining crack spreads and global supply disruptions that boosted margins across gasoline and diesel products. In addition, Valero capitalized on low-cost domestic crude feedstocks, high refinery capacity utilization with minimal unplanned outages, and strong contribution from its renewable diesel platform.
On Jul. 30, VLO shares closed up by 3.5% after reporting its Q2 results. Its adjusted EPS of $12.54 beat Wall Street expectations of $9.87. The company’s revenue was $44.5 billion, surpassing Wall Street forecasts of $36 billion.
For the current fiscal year, ending in December, analysts expect VLO’s EPS to rise 282.9% to $40.62 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering VLO stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and one “Strong Sell.”
This configuration is more bullish than a month ago, with nine analysts suggesting a “Strong Buy.”
On Aug. 4, Arun Jayaram from JPMorgan Chase & Co. (JPM) maintained a “Buy” rating on VLO, with a price target of $339, implying a potential upside of 4.7% from current levels.
While VLO currently trades above its mean price target of $315.11, the Street-high price target of $365 suggests an upside potential of 12.7%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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