Valero (VLO) Offering Possible 25.94% Return Over the Next 7 Calendar Days

Valero’s most recent trend suggests a bullish bias. One trading opportunity on Valero is a Bull Put Spread using a strike $76.50 short put and a strike $71.50 long put offers a potential 25.94% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $76.50 by expiration. The full premium credit of $1.03 would be kept by the premium seller. The risk of $3.97 would be incurred if the stock dropped below the $71.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Valero is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Valero is bullish.

The RSI indicator is at 67.61 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Valero

HollyFrontier’s Q4 2018 Estimates: Ranked First
Wed, 09 Jan 2019 15:10:02 +0000
MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings

(Continued from Prior Part)

## Estimated performance

In this series, we’re ranking four US refiners—Marathon Petroleum (MPC), HollyFrontier (HFC), Valero Energy (VLO), and Phillips 66 (PSX)—based on their estimated earnings growth YoY (year-over-year) in the fourth quarter. HollyFrontier is first with a massive jump in its earnings, while Valero Energy is last. Phillips 66 and Marathon Petroleum occupy the second and third spots, respectively.

## HollyFrontier’s fourth-quarter estimates

According to analysts, HollyFrontier is expected to post an EPS of $1.7 in the fourth quarter—144% higher than its adjusted EPS in the fourth quarter of 2017. The EPS is 14% lower compared to the adjusted EPS in the third quarter. HollyFrontier’s revenues are estimated to be ~$4.5 billion in the fourth quarter—12% higher than the revenues in the fourth quarter of 2017.

HollyFrontier’s refining margins could be lower in the fourth quarter due to weaker refining conditions YoY in its main operating region—Midcon. In the Rockies and Southwest, the index values rose YoY in the fourth quarter. Midcon accounted for 59% of the company’s total crude throughput in the third quarter. The refining index value in Midcon has fallen from $18.7 per barrel in the fourth quarter of 2017 to $14.8 in the fourth quarter.

Overall, the regional index values suggest that HollyFrontier’s refining margin could fall YoY due to the lower Midcon margin. The fall could be partially offset by higher Rockies and Southwest margins in the fourth quarter.

Renewable identification number prices have declined during the quarter, which could give the company a break from compliance costs. HollyFrontier’s Lubricants and Midstream segments could support the company’s earnings growth in the fourth quarter.

Next, we’ll discuss Phillips 66’s fourth-quarter earnings estimate.

Continue to Next Part

Browse this series on Market Realist:

* Part 1 – MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings
* Part 3 – Phillips 66’s EPS Is Expected to Increase 126% in Q4 2018
* Part 4 – Marathon Petroleum’s Earnings Could Rise 25% in Q4 2018

MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings
Wed, 09 Jan 2019 13:35:38 +0000
MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings

## Refiners’ fourth-quarter estimates and rankings

In this series, we’ll rank the refining stocks that analysts expect to see EPS growth YoY (year-over-year) in the fourth quarter. The four refining companies discussed in this series are Marathon Petroleum (MPC), HollyFrontier (HFC), Valero Energy (VLO), and Phillips 66 (PSX). We have also reviewed analysts’ ratings for these stocks.

If we rank these refining stocks based on the expected EPS growth YoY in the fourth quarter, then HollyFrontier occupies the top spot. The company is expected to post a considerable increase in its earnings of ~144% YoY in the fourth quarter. Phillips 66’s earnings could increase compared to Marathon Petroleum and Valero Energy. HollyFrontier and Phillips 66 have diversified earnings models that incorporate other segments like Chemicals and Midstream. Although the refining earnings could be weak in the fourth quarter, other segments could support HollyFrontier and Phillips 66’s total earnings.

Analysts expect the refining earnings to fall YoY in the fourth quarter. Refining margin indicators and refining cracks in the industry point toward a weaker margin environment. The benchmark crack, the US Gulf Coast WTI 3-2-1, fell YoY in the fourth quarter.

In the fourth quarter, RIN (renewable identification number) prices weakened on a yearly basis, which could result in lower compliance expenses for refiners. The weakness in refining earnings due to lower margins could be partly offset by lower RIN expenses.

## Analysts’ ratings

If we consider the “buy” ratings assigned to these companies, then Marathon Petroleum has the highest “buy” ratings. HollyFrontier, which ranks first based on earnings growth, has the lowest “buy” ratings. We’ll discuss analysts’ ratings later in this series.

In this series, we’ll discuss individual companies’ estimated fourth-quarter earnings. Next, we’ll discuss HollyFrontier.

Continue to Next Part

Browse this series on Market Realist:

* Part 2 – HollyFrontier’s Q4 2018 Estimates: Ranked First
* Part 3 – Phillips 66’s EPS Is Expected to Increase 126% in Q4 2018
* Part 4 – Marathon Petroleum’s Earnings Could Rise 25% in Q4 2018

Valero Energy Partners to be Removed from the Alerian Index Series
Tue, 08 Jan 2019 22:05:00 +0000
DALLAS , Jan. 8, 2019 /PRNewswire/ — Alerian announced today that Valero Energy Partners (NYSE: VLP) will be removed from the Alerian Midstream Energy Index (AMNA), Alerian US Midstream Energy Index (AMUS), …

Valero ordered to shut two fuel pipelines at Britain’s Milford Haven
Tue, 08 Jan 2019 16:39:39 +0000
LONDON (Reuters) – The Welsh government environment agency, Natural Resources Wales (NRW), has issued an enforcement notice to suspend two fuel pipelines on the Valero (VLO.N) refinery jetty in Milford …

Will Magellan Midstream Partners Bounce Back in 2019?
Tue, 08 Jan 2019 15:48:00 +0000
After a down year in 2018, this midstream company is looking to rebound.

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