Valero EnergyNYSE: VLO

Investors frequently rely on advice from Wall Street analysts when deciding whether to Buy, Sell, or Hold a stock. Although news about changes in ratings from these analysts can influence a stock's price, it's worth questioning how significant this impact really is.

Valero Energy Corporation's stock price has fallen by 25% since its peak in early 2024, but it still produces significant cash flow, which makes it a good investment. The latest quarterly results showed earnings of $1.14 per share, a decrease from last year because of lower refining margins, but the company still offers a 3.14% dividend. Although refining margins are weaker in 2024 than in 2023, Valero's renewable diesel and ethanol divisions help keep its overall earnings steady.

SAN ANTONIO--(BUSINESS WIRE)--Valero Energy Corporation's Board of Directors has announced a quarterly cash dividend of $1.07 per share on its common stock. This dividend will be paid on December 20, 2024, to shareholders who are on record by the end of business on November 20, 2024. Valero Energy Corporation, along with its subsidiaries, is a global producer and seller of petroleum products and low-carbon liquid fuels.

Valero Energy Corporation (NYSE:VLO) will hold its Q3 2024 Earnings Conference Call on October 24, 2024, at 10:00 AM ET. The call will feature several company executives, including CEO Lane Riggs and CFO Jason Fraser. Analysts from various financial institutions will also participate in the call.

Valero Energy (VLO) reported quarterly earnings of $1.14 per share, which is lower than the Zacks Consensus Estimate of $1.29 per share. This is a decrease compared to earnings of $7.49 per share from the same period last year.

VLO's earnings and revenues for the third quarter fell short of expectations due to lower refining margins and a drop in renewable diesel margins.

Valero Energy is the most cost-effective refiner, which gives it a significant advantage and solid financial performance, even during tough market conditions. I expect VLO to surpass its Q3 earnings predictions, even with a 17% drop in refining margins, thanks to its top-notch operating costs. Additionally, the closure of four refineries in 2025 could enhance market conditions, possibly increasing crack spreads and positively impacting VLO's operations in the Gulf Coast.

Lower global demand for refined products and increased competition from other countries probably impacted VLO's earnings in the third quarter.

Valero Energy (VLO) closed at $137.04 on the most recent trading day, showing a slight increase of 0.29% from its previous closing price.