Valero is an American petroleum company totalizing 16 refineries in the U.S., Canada, United Kingdom and Caribbean. Their final products include asphalt, propane, sulfur, oil, solvent, aromatics and gas for diversified industries. Their renewable energy branch gives a new growth driver through ethanol production.

From a fundamental viewpoint, with a comfortable turnover and a strong net income, the company is weakly valued according to the "enterprise value / revenue" ratio at 0.14x the estimates for 2012. The company is become again profitable; the net increase up to $2 billion from  a loss of $1.9 billion in 2009, EPS is now up to $3.5. Besides Thomson-Reuters’s consensus is confident about this share; indeed 16 analysts at “Buy”, “Outperform” and “Hold” on 19. The target is fixed at $26.5.

Technically, the stock is close to its short-term support of USD 23.36. 100-days moving average is coming as support and could give a new bullish orientation to the security. In weekly configuration, the bearish trend could be stopped on the USD 24 level,  acrossing point of 20 and 50-days moving average, creating thus a relevant support.

Investors could take a buying position on the stock with a target on the USD 26 area. A stop loss will be engaged at 23.2, below the short term support.