We recently compiled a list of the 10 Stocks Analysts Are Upgrading Today. In this article, we are going to take a look at where Valero Energy Corporation (NYSE:VLO) stands against the other stocks analysts are upgrading today.
The easing of the US-China trade war is the catalyst driving equity markets higher after weeks of heightened volatility. Major US indices are once again back into positive territory after recouping all the losses accrued in the aftermath of the U.S. waging a ferocious trade war in the race to settle a long-running trade deficit.
“And just like that, the markets’ twin fears — a tariff-induced recession and sticky inflation — have been greatly assuaged,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “We’re still concerned that high valuations and market concentration remain risks to much higher stock prices this year, but in the short run, markets should love this data and continue yesterday’s (China-trade) celebration.”
The Magnificent Seven club members added over $800 billion in market value in the aftermath of the U.S. and China pausing most tariffs on each other’s goods. As trade tensions between the two greatest economies in the world threatened to disrupt supply chains and harm some of the top U.S. enterprises, technology equities, including semiconductor companies and smartphone manufacturers, were impacted significantly.
However, after negotiations between the United States and China resulted in a brief halt to “reciprocal” duties, investors exhaled with relief. A 90-day tariff delay agreed to by the United States and China relieved Wall Street.
“With US/China clearly on an accelerated path for a broader deal we believe new highs for the market and tech stocks are now on the table in 2025 as investors will likely focus on the next steps in these trade discussions which will happen over the coming months. This morning is a huge win for the bulls and a best case scenario post this weekend in our view,” Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Monday.
Adding to the gains following tariff relief was softer-than-expected inflation data that affirmed the case for a Federal Reserve interest rate cut in June. In April, the consumer price index, a broad indicator of the expenses of goods and services across the U.S. economy, rose 2.3% annually. According to a Dow Jones poll of economists, last month’s inflation rate was projected to stay at 2.4% year over year. The much lower inflation level amid a waging tariff war has heightened the case for the U.S. central bank to cut rates, which works in favor of equities.
Consequently, analysts on Wall Street have been aggressive in upgrading stocks initially battered by concerns of the long-term impact of a vicious U.S.-China trade war. With the 90-day truce, awaiting further negotiations, analysts expect heightened trading activities between the two nations, which is a positive for business.
Our Methodology
We sifted through financial media reports to compile a list of 10 stocks analysts are upgrading today, on May 13. We then settled on the top 10 stocks that have received an analyst upgrade and ranked them in ascending order based on their average upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Massive storage tanks filled with crude oil and diesel fuels at an oil refinery.
Valero Energy Corporation (NYSE:VLO)
Stock Upgrade: Neutral to Buy
Stock Price Target: $154
Stock Upside Potential as of May 13: 14.07%
Valero Energy Corporation (NYSE:VLO) is a multinational fuel producer and marketer known for refining, marketing, and transporting fuels and petrochemical products. It is the world’s largest independent refiner and a leading producer of low-carbon transportation fuels. While the overall energy sector has been under pressure due to oil prices plunging, the company has held steady with a 12% year-to-date gain.
Similarly, Goldman Sachs upgraded Valero Energy Corporation (NYSE:VLO) to a ‘Buy’ from ‘Neutral’ and increased the price target to $154 from $127. According to analysts, Valero is well positioned to benefit from limited refining capacity additions and improving crude differentials on the return of OPEC+ supply. Likewise, the company earnings are projected to increase from $7.50 a share this year to over $12.50 by 2027.
Valero Energy Corporation (NYSE:VLO) delivered mixed first-quarter 2025 results as revenues declined 4.7% year-over-year to $30.3 billion but beat Wall Street estimates by 6.3%. While adjusted earnings per share fell 76.8% year-over-year to $0.89, it still topped analysts’ estimates of $9.43. Additionally, the company reaffirmed its commitment to returning value to shareholders by hiking its quarterly dividend by 5.6%, affirming why it is one of the top energy stocks.
Overall VLO ranks 8th on our list of the stocks analysts are upgrading today. While we acknowledge the potential of VLO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VLO but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
