Analysts Offer Predictions for Valero Energy FY2026 Earnings

Key Points

• Erste Group Bank raised Valero’s FY2026 EPS forecast to $48.02 from $43.31, close to the $48.58 consensus estimate, while projecting FY2027 EPS of $36.86. The firm maintained a “Hold” rating.
• Wall Street remains broadly positive, with Valero holding a “Moderate Buy” consensus rating and an average price target of $335.12, although recent targets range as high as $435 and Jefferies reiterated a “Hold” stance.
• Valero recently exceeded quarterly expectations, reporting $12.54 EPS versus the $10.11 consensus and $44.48 billion in revenue versus $39.47 billion expected. The company also pays a quarterly dividend of $1.20 per share, or $4.80 annualized.

Valero Energy Corporation (NYSE:VLO - Free Report) - Investment analysts at Erste Group Bank increased their FY2026 earnings per share (EPS) estimates for Valero Energy in a report released on Friday, September 18th. Erste Group Bank analyst H. Engel now anticipates that the oil and gas company will earn $48.02 per share for the year, up from their previous forecast of $43.31. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Valero Energy's current full-year earnings is $48.58 per share. Erste Group Bank also issued estimates for Valero Energy's FY2027 earnings at $36.86 EPS.

Several other research firms also recently commented on VLO. Wells Fargo & Company upped their price target on shares of Valero Energy from $356.00 to $389.00 and gave the company an "overweight" rating in a research note on Tuesday, September 1st. Barclays raised their price target on Valero Energy from $279.00 to $323.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Piper Sandler boosted their target price on shares of Valero Energy from $329.00 to $435.00 and gave the stock an "overweight" rating in a report on Thursday, September 3rd. Morgan Stanley increased their target price on shares of Valero Energy from $255.00 to $411.00 and gave the company an "equal weight" rating in a research report on Monday, September 14th. Finally, Jefferies Financial Group reiterated a "hold" rating and set a $401.00 price objective on shares of Valero Energy in a research report on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Valero Energy presently has a consensus rating of "Moderate Buy" and an average price target of $335.12.

Valero Energy Trading Down 4.2%

VLO stock opened at $376.85 on Wednesday. Valero Energy has a one year low of $155.29 and a one year high of $419.04. The stock has a market cap of $108.51 billion, a price-to-earnings ratio of 15.64, a price-to-earnings-growth ratio of 0.27 and a beta of 0.57. The company has a fifty day moving average price of $343.04 and a two-hundred day moving average price of $281.07. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23.

Valero Energy (NYSE:VLO - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $10.11 by $2.43. The company had revenue of $44.48 billion for the quarter, compared to the consensus estimate of $39.47 billion. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The firm's revenue was up 48.8% compared to the same quarter last year. During the same period last year, the company earned $2.28 earnings per share.

Institutional Investors Weigh In On Valero Energy

A number of hedge funds have recently modified their holdings of the stock. Norges Bank bought a new stake in Valero Energy in the 4th quarter valued at about $1,111,542,000. Franklin Resources Inc. boosted its holdings in shares of Valero Energy by 7.5% in the fourth quarter. Franklin Resources Inc. now owns 5,668,210 shares of the oil and gas company's stock worth $922,728,000 after acquiring an additional 394,693 shares during the period. Bank of America Corp DE boosted its holdings in shares of Valero Energy by 11.4% in the first quarter. Bank of America Corp DE now owns 5,033,310 shares of the oil and gas company's stock worth $1,243,630,000 after acquiring an additional 516,975 shares during the period. Bank of New York Mellon Corp grew its position in shares of Valero Energy by 9.4% in the first quarter. Bank of New York Mellon Corp now owns 2,969,320 shares of the oil and gas company's stock valued at $733,660,000 after purchasing an additional 254,604 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of Valero Energy by 18.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,842,339 shares of the oil and gas company's stock valued at $702,285,000 after purchasing an additional 442,177 shares during the period. Institutional investors own 78.69% of the company's stock.

Insider Activity at Valero Energy

In other news, SVP Eric Fisher sold 7,500 shares of Valero Energy stock in a transaction on Monday, June 29th. The stock was sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the sale, the senior vice president directly owned 19,742 shares in the company, valued at $5,294,212.14. The trade was a 27.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 0.36% of the company's stock.

Valero Energy Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Friday, July 31st were given a dividend of $1.20 per share. The ex-dividend date of this dividend was Friday, July 31st. This represents a $4.80 annualized dividend and a dividend yield of 1.3%. Valero Energy's dividend payout ratio (DPR) is currently 19.92%.

Trending Headlines about Valero Energy

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

• Positive Sentiment: Jefferies’ $401 price target implies potential upside from recent levels, even though the firm now recommends holding rather than buying VLO. Jefferies Downgrades Valero Energy to Hold From Buy
• Positive Sentiment: VLO remains supported by strong refining fundamentals. Its latest reported quarter substantially exceeded earnings and revenue expectations, and Zacks recently identified the company as a candidate for an upcoming earnings beat. Stocks Likely to Deliver Earnings Beats
• Neutral Sentiment: A comparison of Valero with renewable-natural-gas company OPAL Fuels presents VLO as a larger, more established energy business, but does not identify a new company-specific catalyst. Analyzing OPAL Fuels and Valero Energy
• Negative Sentiment: Jefferies’ downgrade signals that much of the refining-stock rally may already be priced in, prompting investors to reduce exposure after VLO’s strong gains. Valero and Marathon Cut at Jefferies
• Negative Sentiment: Record diesel prices have benefited Valero, but they may also encourage demand destruction. Possible export restrictions represent an additional risk to refining margins and fuel sales. Diesel Hits a Record
• Negative Sentiment: Lower crude prices, broader weakness across the energy sector and investor profit-taking have weighed on VLO. The stock’s recent decline appears more related to sector rotation and cooling refining momentum than to a newly reported operational problem. Valero Slides as Refining Trade Cools

Valero Energy Company Profile

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. Its primary business is refining crude oil into transportation fuels and other products, including gasoline, diesel, jet fuel, asphalt, lubricants and petrochemical feedstocks.

Valero operates refineries and related facilities in the United States, Canada and the United Kingdom, and markets its products through wholesale and commercial channels in North America and other international markets.

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