Analysts Tout Valero In Barron's

From Barron's

"we're getting close to a trough in spreads," says Rob Lloyd, a Valero fan and lead manager of AIM Constellation and AIM Summit Funds. He thinks the long-term bullish case for refiners is intact, given how tough it is to build refineries in the U.S.

"even with these numbers down, they're going to be profitable," says Lloyd. He sees Valero earning $6.25 a share this year, for $3.5 billion in net income. "They'll do $2 billion in stock buybacks, no problem, and that's assuming they don't sell any refineries."