Should You Buy Valero Stock in January 2026? The Bull Case for Oil Stocks in the New Year.

Group 1: Company Performance - Valero Energy has had a strong start to the year, with shares climbing to new 52-week highs due to solid performance in refining margins and cash returns [1] - The stock has gained more than 70% from its low levels last year, significantly outperforming the S&P 500 Index [4] - Current valuation multiples for Valero Energy are lower than market averages, indicating it is not overly pricey in comparison to its peers in the refining sector [5] Group 2: Industry Dynamics - The refining sector is experiencing a positive shift, with analysts re-evaluating the downstream petroleum industry amid changing geopolitical conditions affecting heavy crude oil supplies [1] - Venezuela's oil industry is under scrutiny due to U.S. sanctions and potential involvement in rebuilding its energy infrastructure, which could impact global oil prices but favor U.S. Gulf Coast refiners like Valero Energy [2] - Valero Energy is well-positioned to process discounted heavy sour barrels, benefiting from any reliable flows of Venezuelan heavy crude [2][3]