Jim Cramer Wished He’d Worked At This Firm Instead Of Goldman Sachs

Jim Cramer expressed regret over not having joined Valero Energy Corporation (NYSE:VLO) instead of Goldman Sachs after graduating from law school. During a morning appearance on September 15th, Cramer praised the firm's performance, noting its 140% share increase over the past year and various factors contributing to its growth.

Valero Energy Corporation (NYSE:VLO) maintains refining operations that allow it to provide fuel products despite geopolitical tensions, ensuring a steady supply of crude oil. In the second quarter, the firm's revenue grew by 49% to $44 billion, and net income surged to $3.7 billion. The growth was primarily driven by its refining business, which saw a 252% increase in operating income.

Valero Energy Corporation (NYSE:VLO) is also benefiting from rising ethanol and renewable diesel income, along with capacity growth that can help during traditional summer upcycles. However, potential headwinds include the ongoing electrification trend, especially in commercial fleets, which could impact its diesel business. Additionally, the conflict in Iran has prompted non-OPEC capacity development, potentially reducing Valero Energy Corporation (NYSE:VLO)'s exposure to the Gulf Coast 3-2-1 crack spread.

The firm is exploring renewable diesel to generate alternate revenue streams, but regulatory changes could pose challenges. Valero Energy Corporation (NYSE:VLO)'s valuation is favorable, with a forward P/E ratio of 14.39, similar to its peers. Hedge fund sentiment has improved in Q2, with notable investments from AQR Capital Management and former Two Sigma Advisors.