In a challenging market environment, Valero Energy Corporation (NYSE:VLO)'s stock has touched a 52-week low, dipping to $123.74. With a market capitalization of $39.6 billion and a P/E ratio of 11.1x, InvestingPro analysis suggests the stock is currently undervalued. The energy sector has faced headwinds, and Valero's stock price reflects the broader industry's performance over the past year. Despite the company's efforts to navigate the volatile energy market, the stock has maintained its attractive 3.42% dividend yield, supported by 36 consecutive years of dividend payments. Investors are closely monitoring the company's strategies and market conditions, as Valero Energy adapts to the dynamic energy landscape and strives for a rebound from this low point. Analyst price targets reach as high as $176, suggesting significant upside potential. Access comprehensive valuation metrics and 12 additional exclusive insights with InvestingPro.
In other recent news, Valero Energy Corporation saw a significant decrease in net income in Q3 2024, dropping to $364 million from $2.6 billion in the same period last year. The refining segment's operating income also fell substantially to $565 million from $3.4 billion year-over-year. The company announced the retirement of Joseph W. Gorder, its Executive Chairman and Director, effective December 31, 2024. R. Lane Riggs, the current CEO and President, will take on the additional role of Chairman of the Board. TD Cowen recently adjusted its outlook on Valero Energy, reducing the price target to $140 from the previous $145, while maintaining a Buy rating on the stock. This adjustment was due to weaker-than-expected earnings influenced by extensive maintenance activities and ongoing capture headwinds. In related news, the delay in clean fuel tax credit guidelines has impacted Darling Ingredients (NYSE:DAR), which has a renewable diesel venture with Valero Energy. The delay is reportedly due to disagreements between agricultural lobbyists and environmentalists over ensuring the program meets its climate goals. These are the latest developments in these companies' operations.
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