Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Valero Energy Corporation (VLO) and Marathon Petroleum Corp (MPC) Are Smart Bets In the Current Market

Although the current market might be overvalued, Valero Energy Corporation (NYSE:VLO) and Marathon Petroleum Corp (NYSE:MPC) still have a considerable growth potential in terms of stock price. Dan Neiman, who is management partner at Neiman Funds, voiced this opinion on Fox Business while discussing the current economic climate and the possible effects of the US mid-term elections on the financial markets. He was joined by Patrick Kaser, the managing director of Brandywine Global, and Bob Iaccino, the chief market strategist at Tethys Partners.

Valero Energy Corporation (NYSE:VLO)

“[…] The oil refining sector has been standing out as of late. Two stocks that have really come out of the top are Valero Energy Corporation (NYSE:VLO) and Marathon Petroleum Corp (NYSE:MPC). Marathon  and Valero both have had a huge earnings growth  over the past three years […],” said Neiman.

Neiman explained that the current sentiment on the stock market was either to hold the stocks through September and wait for the results of the US mid-term elections or to buy stocks that are selling at a discount and have a strong growth potential. He referred this as bottom-up stock picking. According to him, Valero Energy Corporation (NYSE:VLO) and Marathon Petroleum Corp (NYSE:MPC) perfectly fit this bill. Since there is currently less pressure from the buyers and given that the oil price will rise in the next two to three years, Valero Energy Corporation (NYSE:VLO) and Marathon Petroleum Corp (NYSE:MPC) can really boost  portfolio earnings.

While discussing the relevance of US midterm elections to the ebbs and flows of the current stock market, Iaccino raised an interesting point. He said that, from an investor point  of view, it is much more favorable to have two different parties in the White House and the Congress. Besides putting in place an effective system of checks and balances, this ensures that nothing is going to get done regulatory wise. Such a situation is important because entrepreneurs see it as a sign of stability and they know which rules to play by.


Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.