Erste Group Bank Predicts Higher Earnings for Valero Energy

Key Points

• Erste Group raised its FY2027 EPS estimate for Valero to $19.02 from $18.34, though the market consensus for full‑year EPS remains higher at $27.55 per share.
• Valero beat Q1 expectations, reporting $4.22 EPS vs. $3.16 expected and revenue of $32.38 billion versus $31.38 billion, signaling stronger-than-expected quarterly performance.
• Several brokers have lifted price targets (e.g., Wells Fargo to $292, BMO to $270, Goldman to $237), leaving a MarketBeat consensus rating of "Moderate Buy" with a $237.94 target.

Valero Energy Corporation (NYSE:VLO - Free Report) - Equities research analysts at Erste Group Bank lifted their FY2027 EPS estimates for shares of Valero Energy in a research report issued to clients and investors on Tuesday, May 5th. Erste Group Bank analyst H. Engel now forecasts that the oil and gas company will post earnings per share of $19.02 for the year, up from their prior estimate of $18.34. The consensus estimate for Valero Energy's current full-year earnings is $27.55 per share.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The oil and gas company reported $4.22 EPS for the quarter, beating the consensus estimate of $3.16 by $1.06. The business had revenue of $32.38 billion during the quarter, compared to analysts' expectations of $31.38 billion. Valero Energy had a net margin of 3.37% and a return on equity of 15.94%. The business's quarterly revenue was up 7.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.89 EPS.

Other equities research analysts also recently issued reports about the company. Wells Fargo & Company increased their price target on Valero Energy from $220.00 to $292.00 and gave the stock an "overweight" rating in a research report on Tuesday, March 31st. BMO Capital Markets raised their target price on Valero Energy from $230.00 to $270.00 and gave the stock an "outperform" rating in a report on Monday, April 6th. The Goldman Sachs Group lifted their price target on Valero Energy from $203.00 to $237.00 and gave the company a "buy" rating in a research report on Thursday, March 12th. Piper Sandler upped their price objective on Valero Energy from $236.00 to $263.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 8th. Finally, Citigroup raised their price objective on shares of Valero Energy from $246.00 to $259.00 and gave the stock a "neutral" rating in a research note on Friday, May 1st. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $237.94.

Valero Energy Trading Down 0.4%

Shares of Valero Energy stock opened at $235.83 on Friday. The stock has a market cap of $70.52 billion, a PE ratio of 17.14, a price-to-earnings-growth ratio of 0.34 and a beta of 0.58. The firm has a fifty day moving average price of $234.82 and a 200 day moving average price of $198.52. Valero Energy has a 1 year low of $117.71 and a 1 year high of $258.43. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.58 and a quick ratio of 1.11.

Valero Energy Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Thursday, May 21st will be given a dividend of $1.20 per share. The ex-dividend date is Thursday, May 21st. This represents a $4.80 dividend on an annualized basis and a yield of 2.0%. Valero Energy's dividend payout ratio is currently 34.88%.

Insider Transactions at Valero Energy

In other Valero Energy news, SVP Eric A. Fisher sold 8,311 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $227.69, for a total value of $1,892,331.59. Following the sale, the senior vice president directly owned 42,242 shares of the company's stock, valued at approximately $9,618,080.98. This trade represents a 16.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.36% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in VLO. Cassaday & Co Wealth Management LLC acquired a new position in Valero Energy during the first quarter worth $268,000. Rice Partnership LLC acquired a new stake in shares of Valero Energy in the first quarter valued at about $8,066,000. Convergence Investment Partners LLC grew its position in shares of Valero Energy by 13.0% in the first quarter. Convergence Investment Partners LLC now owns 28,465 shares of the oil and gas company's stock valued at $7,033,000 after purchasing an additional 3,280 shares during the period. Amova Asset Management Americas Inc. increased its stake in shares of Valero Energy by 2.1% during the first quarter. Amova Asset Management Americas Inc. now owns 3,499 shares of the oil and gas company's stock worth $864,000 after purchasing an additional 72 shares in the last quarter. Finally, Legacy Wealth Managment LLC ID increased its stake in shares of Valero Energy by 80.6% during the first quarter. Legacy Wealth Managment LLC ID now owns 168 shares of the oil and gas company's stock worth $42,000 after purchasing an additional 75 shares in the last quarter. Hedge funds and other institutional investors own 78.69% of the company's stock.

Trending Headlines about Valero Energy

Here are the key news stories impacting Valero Energy this week:

• Positive Sentiment: Erste Group raised its FY2027 EPS forecast for Valero to $19.02 from $18.34, signaling improving analyst expectations for the company’s earnings power heading into next fiscal year. (Note: consensus full‑year EPS sits higher at $27.55.)
• Positive Sentiment: Morgan Stanley raised its price target on VLO to $232 (from $222) while keeping an Equal Weight rating, citing stronger-than-expected Q1 results — a sign of analyst support that can underpin the stock. Morgan Stanley Raises its Price Target on Valero Energy (VLO) to $232
• Positive Sentiment: Valero’s board declared a regular quarterly cash dividend of $1.20 per share (annualized yield ~2.0%), payable June 23 with an ex‑dividend date of May 21 — supports income-focused investors and signals cash-flow confidence. Valero Energy Corporation Declares Regular Cash Dividend on Common Stock
• Positive Sentiment: VLO is being highlighted in screeners and articles (Zacks, Yahoo Finance) as a PEG-driven GARP and Zacks Rank #1 growth pick — increased media/analyst attention can attract flows from momentum and growth-oriented investors. Zacks.com featured highlights include Dow, Valero Energy, Ultrapar Participacoes and Nexa Resources
• Neutral Sentiment: U.S. indices are broadly higher on tech earnings and macro headlines, a market tailwind that can lift cyclical names like refiners — but sector-specific drivers (crack spreads, oil demand) will matter more for Valero. S&P 500 and Nasdaq 100 at Record Highs on Tech Earnings and US-Iran Peace Hopes
• Neutral Sentiment: Multiple industry write-ups highlight Valero as a refining & marketing sector pick and note growing investor attention — supportive for sentiment but not an immediate catalyst. Valero Energy Corporation (VLO) is Attracting Investor Attention: Here is What You Should Know

Valero Energy Company Profile

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company's operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.

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