Valero Energy Corporation (NYSE: VLO) Stock Analysis: UBS Reiterates Buy Amid Strong Performance and Renewable Fuels Expansion

Font: Financial Modeling Prep  • Jun 11, 2026

• Investment firm UBS has reaffirmed its "Buy" rating for Valero Energy Corporation (NYSE: VLO), signaling confidence in its future stock price.
• Valero has demonstrated robust stock market performance, rallying 47.6 percent in the last six months, fueled by strong refining margins.
• The company is strategically expanding into low-carbon fuels, including renewable diesel and sustainable aviation fuel, positioning itself for future growth in the sustainable energy sector.

Valero Energy Corporation is one of the largest petroleum refiners and marketers in North America. The company produces and sells transportation fuels and other petrochemical products. Its main competitor in the refining space is Marathon Petroleum Corp. (NYSE: MPC), which also sees strong market performance.

On June 11, 2026, the investment firm UBS confirmed its "Buy" rating for Valero. This positive outlook was issued when the stock's price was $259.96. A "Buy" rating suggests that the firm believes the stock's price will increase in the near future, making it a good investment.

This rating follows a period of strong performance for Valero. The stock rallied 47.6 percent in the last six months, driven by strong refining margins. These margins benefit from a tight fuel supply and low inventories, even as West Texas Intermediate (WTI) crude oil trades above $85.00 per barrel.

Further supporting this view, Valero was added to the Zacks Rank #1 (Strong Buy) list, as highlighted by Zacks Investment Research. This is based on a 49.6% increase in its earnings estimate. Valero also has a favorable PEG ratio of 0.38, which is better than the industry average of 0.49.

Valero is also expanding into low-carbon fuels to support future growth. The company is developing its renewable diesel, sustainable aviation fuel (SAF), and ethanol businesses. Its Diamond Green Diesel venture now has a capacity of 1.2 billion gallons of renewable fuel annually, capturing demand for cleaner energy.