Valero Energy Corporation : Supported by 100-days moving average
By Lara Villeneuve
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$23.9 | $0 | $23.2 | -100% |
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.