We view Valero (VLO) as a top holding in our portfolio given its strong size scale and diversification of business. Given that we are in the middle of summer travel season, and demand for oil continues to be strong, VLO seeks to benefit. Valero's earnings growth exceed its subsector by 74%.

We think the higher demand for gasoline, jet fuel, and diesel will continue to benefit VLO and continue to see a favorable environment for the refiners.

Higher oil prices have helped Valero improve its earnings per share, and the current macro environment should help Valero keep its robust earnings growth.