Company Overview - Valero Energy (VLO) shares increased by 3.4% to close at $148.67, with a notable trading volume compared to normal sessions, and a total gain of 12.1% over the past four weeks [1][2] Refining Sector Insights - The surge in Valero's stock is attributed to its strong position in the refining sector and an anticipated improvement in refining margins in the U.S. due to a decline in domestic refining capacity from the closure of major refineries [2] - Valero operates a robust network of refineries with a throughput capacity of 3.2 million barrels per day, positioning the company to benefit from rising refining margins [2] - The company's low-cost operations in refining allow it to maintain profitability across commodity cycles, further enhancing its growth potential [2] Renewable Energy Initiatives - Valero's involvement in producing renewable diesel and sustainable aviation fuels (SAF) positions it as a leader in the low-carbon fuels market, contributing to its growth drivers [2] Earnings Expectations - Valero is expected to report quarterly earnings of $1.75 per share, reflecting a year-over-year decline of 35.4%, with revenues projected at $27.93 billion, down 19% from the previous year [3] - The consensus EPS estimate for Valero has been revised 7.1% higher over the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] Industry Context - Valero Energy is part of the Zacks Oil and Gas - Refining and Marketing industry, which includes other companies like World Kinect (WKC) [5] - World Kinect's consensus EPS estimate has changed by -6.1% over the past month, with a Zacks Rank of 5 (Strong Sell), contrasting with Valero's more favorable outlook [6]