Top 15 Commodity Producers With the Highest Upside Potential

9. Valero Energy Corporation (NYSE:VLO)

Analysts’ Upside Potential as of May 01: 30.37%

Valero Energy Corporation (NYSE:VLO) is among the largest independent refiners in the United States. It runs 15 refineries in the US, Canada, and the UK with a combined daily throughput capacity of 3.2 million barrels.

The firm remains well-positioned for almost any market condition due to its high-quality refining assets and location, which allows for higher feedstock flexibility. Valero Energy Corporation (NYSE:VLO) has always had an advantage because of its more efficient system of 15 refineries, which enables it to turn lower-quality feedstock into a high-value output. The business shifted to processing larger quantities of high-quality discounted domestic crude by replacing imported crude with local, building more light crude processing capacity, and investing in transportation infrastructure as domestic light crude discounts emerged.

In Q1 2025, Valero Energy Corporation (NYSE:VLO) announced a 6% raise in its quarterly cash dividend and maintained a 73% payout ratio, both of which contributed to outstanding shareholder returns. The company’s $230 million SEC unit optimization project at the St. Charles refinery, which is anticipated to start in 2026, aims to boost the production of high-value products. The operating income from the Ethanol field doubled from the $10 million achieved in the first quarter of 2024 to $20 million. Refining margins increased throughout the quarter, driven by decreased product inventories and increased demand for light products in the US compared to the same time last year.

Valero Energy Corporation (NYSE:VLO) also reopened its operations in Mexico as its import authorization was reinstated after it had been halted. The business produced $952 million in net cash from operations, including a $157 million favorable shift in working capital, showing strong cash flow management, making it one of the  Best Commodity Stocks.