With a market cap of $39.9 billion, Valero Energy Corporation (VLO) is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels, and petrochemical products. The San Antonio, Texas-based company operates through three segments: Refining; Renewable Diesel; and Ethanol. 

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Valero Energy fits this criterion perfectly. The company sells its products primarily in the United States, Canada, the United Kingdom, Ireland, and Latin America. It also owns over 15 petroleum refineries located in the United States, Canada, and the United Kingdom.

The American-based fuels producer dropped 31.4% from its 52-week high of $184.79. Over the past three months, VLO has fallen 4.2%, surpassing the broader Nasdaq Composite’s ($NASX) 12.8% decrease during the same timeframe.

In the long term, VLO is ticked up 3.4% on a YTD basis, outperforming NASX's 9.5% loss. However, shares of VLO have slipped 15.2% over the past 52 weeks, lagging behind NASX’s 9.1% increase over the same time period.

Since mid-September last year, the stock has been trading below its 200-day moving average. Since the month of May, VLO has been trading below its 50-day moving average despite some fluctuations. 

Despite reporting better-than-expected Q4 2024 adjusted earnings of $0.64 and revenue of $30.8 billion, Valero's stock dropped 2.9% on Jan. 30. The company’s results reflected a sharp year-over-year decline, with adjusted EPS plunging 82.1%, net income falling 76.6% to $281 million, and operating income sinking 77.6% to $348 million. Refining margins, a critical driver of Valero’s profitability, deteriorated as refining segment operating income dropped 72.7% to $437 million. 

Lastly, despite a 6% dividend increase, investors remained cautious due to rising operational costs, macroeconomic uncertainties, and volatile energy market conditions.

However, its rival Marathon Petroleum Corporation (MPC) underperformed VLO. Shares of MPC have declined 24.1% in the last 52 weeks and also dropped 2.3% on a YTD basis.

Despite VLO’s weak performance over the last year, analysts remain bullish about its prospects. Among the 18 analysts covering the stock, there is a consensus rating of “Strong Buy,” and it is currently trading below the mean price target of $151.22.