79.00 0.00 (0.00%)
After hours: 7:50PM EST
|Bid||78.56 x 1800|
|Ask||0.00 x 800|
|Day's Range||78.10 - 79.33|
|52 Week Range||68.81 - 126.98|
|Beta (3Y Monthly)||1.14|
|PE Ratio (TTM)||7.52|
|Earnings Date||Jan 31, 2019|
|Forward Dividend & Yield||3.20 (4.13%)|
|1y Target Est||110.71|
Does Wall Street Expect Valero Energy’s Q4 Earnings to Fall?(Continued from Prior Part)Short interest in ValeroValero Energy’s (VLO) short interest as a percentage of its outstanding shares has risen 0.14 percentage points since October 31,
Does Wall Street Expect Valero Energy’s Q4 Earnings to Fall?(Continued from Prior Part)Analysts’ ratings for ValeroUntil now in this pre-earnings series, we’ve been evaluating Valero Energy’s (VLO) earnings and refining margin expectations
Does Wall Street Expect Valero Energy’s Q4 Earnings to Fall?(Continued from Prior Part)Implied volatility in ValeroIn this article, we’ll look at Valero Energy’s (VLO) stock price forecast range, which is based on its current implied
# Valero Energy Corp ### NYSE:VLO View full report here! ## Summary * Perception of the company's creditworthiness is negative but improving * Bearish sentiment is low * Economic output in this company's sector is contracting ## Bearish sentiment Short interest | Positive Short interest is extremely low for VLO with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting VLO. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $12.87 billion over the last one-month into ETFs that hold VLO are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit There is no PMI sector data available for this security. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator with a strengthening bias over the past 1-month. Although VLO credit default swap spreads are decreasing, they are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Does Wall Street Expect Valero Energy’s Q4 Earnings to Fall?(Continued from Prior Part)Valero’s dividend paymentValero Energy’s (VLO) dividend payments have been increasing steadily over the past few years. In the fourth quarter of 2018,
Does Wall Street Expect Valero Energy’s Q4 Earnings to Fall?(Continued from Prior Part)Valero stock performance In the previous article, we examined Valero Energy’s (VLO) refining margin expectation for the fourth quarter of 2018. Now, let’s
Does Wall Street Expect Valero Energy’s Q4 Earnings to Fall?(Continued from Prior Part)Valero’s refining crack indicators In the previous article, we saw that Wall Street analysts expect Valero Energy’s (VLO) EPS to fall in the fourth quarter
Does Wall Street Expect Valero Energy’s Q4 Earnings to Fall?Third-quarter performance versus expectationsValero Energy (VLO) is expected to publish its fourth-quarter earnings results on January 31, 2019. Before we proceed with the company’s fourth-quarter estimates, let’s recap its third-quarter performance compared to the estimates.In the
Moody's Investors Service ("Moody's") upgraded Valero Energy Partners LP's (VLP) senior unsecured rating to Baa2 from Baa3. The rating action follows the announcement by Valero Energy Corporation (VLO, Baa2 stable) that it has acquired for cash all outstanding publically held common units of VLP. As part of the transaction, VLO has unconditionally guaranteed VLP's obligations.
MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings (Continued from Prior Part) ## Analysts’ ratings In the previous part, we discussed analysts’ ratings for refining companies before their fourth-quarter earnings. We compared the overall ratings for HollyFrontier (HFC), Phillips 66 (PSX), Marathon Petroleum (MPC), and Valero Energy (VLO). We also discussed analysts’ ratings for Marathon Petroleum and Phillips 66. In this part, we’ll discuss analysts’ ratings for HollyFrontier and Valero Energy. ## HollyFrontier has mixed ratings HollyFrontier is growing through its capex and acquisitions across its business segments. In the past few years, acquisitions in the Lubricant segment solidified the company’s footprints in the industry. HollyFrontier’s modernization activities in its Refining segment have prepared the company to face future challenges. Wall Street analysts expect HollyFrontier’s EPS to grow 152% in 2018—higher compared to its peers. HollyFrontier has the financial strength to sustain the growth. The company’s total debt-to-capital ratio was 27% in the third quarter—lower than most of its US peers. However, HollyFrontier stock trades at 5.1x the forward EV-to-EBITDA multiple, which is above the peer average of 5.0x. HollyFrontier’s refining index value in its main operating region, Midcon, was lower YoY in the fourth quarter. The lower value could have led to mixed ratings for the stock. HollyFrontier’s mean target price is $71 per share, which implies a 35% gain from the current level. ## Valero Energy has the third-highest “buy” ratings Most analysts have a favorable opinion on Valero Energy stock. The positive sentiment could be due to the company’s strong financials, growth activities, and lower RIN (renewable identification number) costs. Valero Energy has a comfortable debt position. The company’s capex activities will likely continue to support its future earnings growth and strengthen its financials. RIN prices have been falling—a favorable development for Valero Energy. Lower RIN prices point to cost savings and better earnings for the company. Valero Energy’s mean target price is $114 per share, which implies a 47% gain from the current level. Browse this series on Market Realist: * Part 1 - MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings * Part 2 - HollyFrontier’s Q4 2018 Estimates: Ranked First * Part 3 - Phillips 66’s EPS Is Expected to Increase 126% in Q4 2018
Amid the uproar over the wildly unstable markets, the usual suspects like technology or retail garnered the most attention. However, the deterioration in oil stocks presents one of the more troubling economic indicators. While drivers appreciate the discount at the pump, a deflated energy sector typically means a slowdown in commerce. That said, the benchmark indices have witnessed a sharp rise in sentiment. For instance, the Dow Jones Industrial Average has gained over 3% this month. Likewise, oil and energy stocks have benefited the most from the resurgence. West Texas Intermediate is up over 14% in January, while the international benchmark Brent Crude Oil jumped 13%. Still, I'd take a cautious approach to oil & gas stocks at this juncture. Countries awash in "black gold," such as Saudi Arabia, are attempting to diversify their economies away from commodity dependency. They know firsthand the threat that suddenly declining prices pose. Further, efforts to artificially raise demand with production cuts have failed. InvestorPlace - Stock Market News, Stock Advice & Trading Tips But on the flipside, energy stocks offer longer-term opportunities, if you know where to look. A major oversight is the focus on quantity and not quality. For example, shale-derived oil is too light to meet industrial demand for diesel. Therefore, demand for midstream and downstream oil stocks can jump when the supply of appropriate commodities dwindles. Under the current environment, upstream oil & gas stocks present challenges. However, this segment shouldn't be ignored. Proven companies that profit from their exploration dollars could move higher, especially if the newfound bullishness in oil sustains itself. * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors Undoubtedly, this is a tricky segment. But if you have the nerve, here are five oil stocks to consider: ### BP (BP) Source: Mike Mozart via Flickr Drilling for oil is a centuries-old business. As such, it's easy to think that the industry remains an unsophisticated, crude affair, no pun intended. However, energy stocks are rapidly becoming dependent on innovative technologies, with BP (NYSE:BP) lending a recent example. A few days ago, BP announced that it discovered one billion barrels of crude in the Gulf of Mexico. Specifically, the company hit pay dirt at its Thunder Horse field, which is located off the tip of Louisiana. But what made this announcement distinct was how BP made its discovery: Using advanced seismic technology and data processing, BP accelerated its analytics. Management stated that using prior-generation tech, the Thunder Horse finding would have taken years. Now, it takes just weeks. Of course, upstreaming is risky in a volatile market due to the expenses involved in exploration efforts. But BP's seismic tech sounds like a gamechanger that separates it from lesser oil stocks. ### Kinder Morgan (KMI) Source: Roy Luck via Flickr Part of the complexity involved in assessing energy stocks is the underlying product diversity. For instance, different oil viscosities lend to variances in performance and functionality. At its most elemental level, oil and gas products serve specific needs. Understanding these nuances can help navigate you toward the best investment. With that in mind, if I had to make a pick among oil & gas stocks, I'm putting Kinder Morgan (NYSE:KMI) on my short list. In recent years, natural gas production has skyrocketed in the U.S. This has created a viable market that didn't previously exist in such scale. As a result, Kinder Morgan's midstream operations should continue to enjoy long-term demand. While KMI has exposure up and down the supply chain, its network of gas pipelines primarily rings the cash registers. Loosely speaking, the company operates a subscription business model: clients pay KMI based on the amount of gas sent through the pipelines. * 10 Stocks You Can Set and Forget (Even In This Market) No matter what happens to natural gas prices, transportation of energy-related commodities will remain a vital business venture. ### Magellan Midstream Partners (MMP) Source: Tony Webster via Flickr Over the last few volatile years, most oil stocks simply operated on survival mode. After absorbing devastating losses in 2014 and 2015, most sector players' financials look understandably awful. On the other hand, we have exceptions like Magellan Midstream Partners (NYSE:MMP). Since 2015, MMP has provided consecutive annual revenue growth, and momentum remains strong. In its most recent quarter, MMP delivered sales of $638 million, up over 11% year-over-year. Moreover, the company generates consistently positive free cash flow and features a fairly stable balance sheet. Despite the general wildness in oil stocks, MMP should continue to deliver the goods. Management is eyeing overall growth, as evidenced by the constant expansion of its refined-petroleum products pipeline in Texas. More importantly, the organization is broadening its scope while emphasizing fiscal discipline. ### Valero Energy (VLO) Source: Mike Mozart via Flickr Even compared to other troubled energy stocks, Valero Energy's (NYSE:VLO) precipitous downturn surprised many observers. After putting up outstanding numbers throughout most of 2018, the final quarter proved insurmountable. Between the beginning of October and the end of December, VLO had sunk 34%. But for current speculators, the extreme bearishness in Valero shares have taken down significant risk. For starters, we have to go back to November 2017 to see prices this low. More importantly, management has sparked a fiscal revival. Thanks to key acquisitions, Valero's revenue and profitability metrics have improved dramatically since 2016. * 7 Stocks at Risk of the Global Smartphone Slowdown I see more of the same in 2019, especially with its merger with Valero Energy Partners. Overall, the organization has solid financial standing, which has proven valuable in terms of shareholder payouts. ### Occidental Petroleum (OXY) Source: Hayden Irwin via Flickr Like other energy stocks, Occidental Petroleum (NYSE:OXY) incurred a disjointed year in 2018. In the first half, OXY appeared very promising, gaining over 15%. Unfortunately, sector turbulence combined with a broader market meltdown cratered the company. After the dust settled, OXY had shed more than 13% last year. Still, I wouldn't rule out a comeback. Since hitting a sales bottom in 2016, Occidental has been on a tear. Prior acquisitions have proved vital, with OXY returning to annual profitability in 2017, and is on course for a repeat performance in 2018. Moreover, the leadership team have anticipated multiple oil-pricing scenarios. Should a barrel of crude drop to $40, OXY asserts that it can pay its dividends, and not overspend its cash flow. The sector is volatile, but I doubt that it will get that bad. Therefore, OXY presents an intriguing contrarian case. As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 5 "Discounted" Oil Stocks to Buy After a Tough 2018 appeared first on InvestorPlace.
San Antonio-based Valero Energy Corp. has completed its merger with a subsidiary that owns and operates pipelines and storage terminals, the company announced Thursday morning. Parent company Valero (NYSE: VLO) announced in Octoberits plans to buy logistics arm Valero Energy Partners LP at $42.25 per share. The master limited partnership, or MLP, owns and operates pipelines and storage terminals in Texas, Oklahoma, Louisiana and Tennessee that support Valero refineries. The closing of the merger comes after a strong third quarter for the parent company and its MLP, which reported $141 million in revenue.
MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings (Continued from Prior Part) ## Analysts’ ratings HollyFrontier (HFC), Phillips 66 (PSX), Marathon Petroleum (MPC), and Valero Energy (VLO) are covered by 16, 18, 17, and 19 Wall Street analysts, respectively. Among the analysts, 31%, 56%, 100%, and 63% rated HollyFrontier, Phillips 66, Marathon Petroleum, and Valero Emergy as a “buy,” respectively. In this part, we’ll discuss analysts’ ratings for Marathon Petroleum and Phillips 66. ## Marathon Petroleum Marathon Petroleum is growing due to its capex and acquisitions. The company’s latest acquisition was Andeavor. Wall Street analysts expect the company’s earnings to increase 34% in 2018 and 42% in 2019. Marathon Petroleum will likely benefit from merger synergies and growth activities. Marathon Petroleum’s mean target price is $98 per share, which implies a 57% gain from the current level–the highest among its peers. ## Phillips 66 Phillips 66 is an integrated and diversified downstream company. During periods with lower refining earnings, other segments (like Midstream, Chemicals, and Marketing) contribute to the overall earnings and shield Phillips 66 from volatility in the refining environment. Phillips 66 plans to grow these segments through its capex and acquisitions. Phillips 66 has strong financials. The company has comfortable debt and a favorable liquidity position. However, Phillips 66 trades at a premium to the peer average, which has led to mixed ratings for the company. Phillips 66’s mean target price is $121 per share, which implies a 32% gain from the current level. Continue to Next Part Browse this series on Market Realist: * Part 1 - MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings * Part 2 - HollyFrontier’s Q4 2018 Estimates: Ranked First * Part 3 - Phillips 66’s EPS Is Expected to Increase 126% in Q4 2018
SAN ANTONIO, Jan. 10, 2019 -- Valero Energy Corporation (NYSE: VLO) (“Valero”) and Valero Energy Partners LP (NYSE: VLP) (the “Partnership”) today announced the completion of.
MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings (Continued from Prior Part) ## Valero Energy In this series, we have ranked four refiners based on their estimated earnings growth YoY (year-over-year) in the fourth quarter. We reviewed HollyFrontier (HFC), Phillips 66 (PSX), and Marathon Petroleum’s (MPC) expected performance. HollyFrontier was first with 144% estimated earnings growth YoY in the fourth quarter, followed by Phillips 66 (with 126% earnings growth) and Marathon Petroleum (with 25% earnings growth). In this part, we’ll review Valero Energy’s (VLO) estimated earnings growth for the fourth quarter. ## Valero Energy’s fourth-quarter estimates Wall Street analysts expect that Valero Energy could post an EPS of $0.9 in the fourth quarter. The estimate is 23% lower than the company’s adjusted EPS in the fourth quarter of 2017 and 56% lower than the adjusted EPS in the third quarter. In this series, Valero Energy is the only company that’s expected to post a YoY decline in its fourth-quarter earnings. Valero Energy’s revenues are estimated to be ~$25.3 billion in the fourth quarter—4% lower than its revenues in the fourth quarter of 2017. Valero Energy’s lower earnings could be due to the expected fall in the company’s refining margin and earnings. Valero Energy’s crack indicators fell in three of its four operating zones in the fourth quarter—compared to the fourth quarter of 2017. In the fourth quarter, the US Gulf Coast crack and the North Atlantic fell 42% YoY and 33% YoY. The US West Coast crack indicator fell 11% YoY in the fourth quarter. These three regions accounted for 85% of the company’s total throughput in the third quarter. The fall in the crack indicators in these regions points toward a likely YoY fall in the company’s refining margin in the fourth quarter. However, Valero Energy could benefit from the decline in RIN (renewable identification number) prices in the fourth quarter. According to data published by Valero Energy, ethanol RIN prices have fallen 84% YoY to an average of 13 cents per gallon in the fourth quarter. Biodiesel RIN prices have fallen 59% YoY to 39.5 cents per gallon in the fourth quarter. Lower prices could give Valero Energy a break. The company has been bearing compliance costs for quite some time. Continue to Next Part Browse this series on Market Realist: * Part 1 - MPC, VLO, HFC, and PSX: Q4 Estimates and Rankings * Part 2 - HollyFrontier’s Q4 2018 Estimates: Ranked First * Part 3 - Phillips 66’s EPS Is Expected to Increase 126% in Q4 2018
While easing oversupply concerns and hopes of U.S.-China trade deal helped oil to squirt past $50, it remains to be seen if the commodity can maintain the recent gains.
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 ## 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
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), ...
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 ...
Oil Exports and Downstream Stocks Might Start 2019 on a High Note ## Brent-WTI spread On January 7, Brent crude oil March futures settled at ~$8.81—higher than WTI crude oil February futures. On December 31, the spread was ~$8.39. On December 31–January 7, Brent crude oil March futures rose 6.6%—20 basis points less than the rise in WTI or US crude oil February futures. In the trailing week, the United States Brent Oil ETF (BNO) has risen 6.1%—40 basis points less than the rise in the United States Oil ETF (USO). BNO tracks Brent crude oil futures, while USO follows US crude oil futures. Easing concerns of increased supply outside the US might be behind WTI crude oil’s underperformance compared to Brent crude oil. ## US crude oil exports The above chart shows the broadly positive relationship between US crude oil exports and the Brent-WTI spread since December 2015. Exports seem to follow the Brent-WTI spread with a lag. When the US lifted the ban on US crude oil exports in December 2015, US crude oil production started rising. US crude oil production rose ~27.5% to ~11.7 MMbpd (million barrels per day) in the week ending on December 28. In the same week, US crude oil exports fell by ~0.7 MMbpd to ~2.23 MMbpd. US crude oil exports rose by ~0.7 MMbpd year-over-year. If the Brent-WTI spread expands due to easing concerns about rising supply outside the US, crude oil exports might gain. ## Brent-WTI spread and US energy companies While a widening Brent-WTI spread is good for US refiners and US oil exporters, it’s a disadvantage for US oil producers selling in the US market. A narrowing spread has the opposite impact. On October 19, the Brent-WTI spread expanded to $10.66—the widest level since June 8. On October 19–January 7, the Brent-WTI spread contracted by ~$1.8, while the VanEck Vectors Oil Refiners ETF (CRAK) fell 13.5%. Phillips 66 (PSX) and Valero Energy (VLO), which account for ~16.5% of CRAK, have fallen 11% and 16.9%, respectively, since October 19. Apart from the Brent-WTI spread, the contraction in the WTI-WCS (Western Canadian Select) spread might have dragged US downstream stocks. If the Brent-WTI spread moves higher, it could support the fall in these US refining stocks.
Which Refiners Have a Better Dividend Yield in 2019? (Continued from Prior Part) ## HollyFrontier’s dividend yield HollyFrontier (HFC) occupies the last spot among the six downstream stocks that we’re discussing in this series. The company has the fourth-largest market cap of ~$9 billion. HollyFrontier’s current dividend yield stands at 2.6%. In the fourth quarter, the company made a dividend payment of $0.33 per share. The dividend was announced on November 7 and paid on December 12. HollyFrontier has paid dividends consistently in the past three years. HollyFrontier made a dividend payment of $0.33 per share on December 30, 2015. PBF Energy’s (PBF) dividend was stable in the past three years. However, Valero Energy (VLO), Marathon Petroleum (MPC), and Phillips 66’s (PSX) dividend payments have risen in the past three years. ## Valuations HollyFrontier trades at a forward PE ratio of 6.8x, which is below the peer average of 7.3x. The steep decline of 27% in the fourth quarter impacted HollyFrontier’s valuations. Such a sharp fall in the stock price was due to the weaker refining environment, which pointed to lower refining earnings for HollyFrontier in the fourth quarter. In upcoming quarters, as the refining environment improves, the stock could rise. The company’s valuations could surpass the peer average due to its financials and growth expectations. HollyFrontier has a high expected growth rate among its US peers. The company’s EPS is expected to increase 152% in 2018. HollyFrontier is expanding its lubricants segment and modernizing its refining segment. HollyFrontier has strong financials denoted by its comfortable debt position and surplus cash flow situation. The stock is could have better valuations due to its strong financials and high growth prospects. Browse this series on Market Realist: * Part 1 - Which Refiners Have a Better Dividend Yield in 2019? * Part 2 - Valero Tops the Dividend Yield Chart in 2019 * Part 3 - Phillips 66 Is Second with a Dividend Yield of 3.6%