FY2026 EPS Estimate for Valero Energy Increased by Analyst

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Valero Energy to $26.70 from $22.90, reflecting a more upbeat earnings outlook. The new forecast remains slightly below the current consensus estimate of $28.02 per share.
• Valero posted a strong fiscal quarter, with EPS of $4.22 versus expectations of $3.16 and revenue of $32.38 billion topping estimates. Revenue also rose 7.0% year over year, underscoring solid operating performance.
• The company announced a quarterly dividend of $1.20 per share, or $4.80 annualized, implying a 2.0% yield. Valero also has broad analyst support, with a Moderate Buy consensus and an average price target of $237.94.

Valero Energy Corporation (NYSE:VLO - Free Report) - Investment analysts at Erste Group Bank raised their FY2026 earnings per share (EPS) estimates for shares of Valero Energy in a research note issued on Tuesday, May 5th. Erste Group Bank analyst H. Engel now forecasts that the oil and gas company will earn $26.70 per share for the year, up from their prior forecast of $22.90. The consensus estimate for Valero Energy's current full-year earnings is $28.02 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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.16 by $1.06. The firm had revenue of $32.38 billion during the quarter, compared to the consensus estimate of $31.38 billion. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.The business's revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.89 EPS.

Other research analysts also recently issued research reports about the company. Argus upgraded Valero Energy to a "hold" rating in a research note on Monday, February 2nd. Morgan Stanley upped their price objective on Valero Energy from $182.00 to $222.00 and gave the company an "equal weight" rating in a research note on Friday, April 24th. TD Cowen upped their price objective on Valero Energy from $255.00 to $276.00 and gave the company a "hold" rating in a research note on Monday, May 4th. Scotiabank upped their price objective on Valero Energy from $178.00 to $226.00 and gave the company a "sector outperform" rating in a research note on Wednesday, April 22nd. Finally, Citigroup upped their price objective on Valero Energy from $246.00 to $259.00 and gave the company a "neutral" rating in a research note on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $237.94.

Valero Energy Stock Down 0.1%

Shares of NYSE:VLO opened at $240.81 on Monday. The company has a market capitalization of $71.50 billion, a PE ratio of 17.50, a price-to-earnings-growth ratio of 0.34 and a beta of 0.58. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.58 and a quick ratio of 1.15. The business has a fifty day moving average price of $234.82 and a two-hundred day moving average price of $198.52. Valero Energy has a 1 year low of $121.41 and a 1 year high of $258.43.

Institutional Trading of Valero Energy

Institutional investors have recently added to or reduced their stakes in the stock. Whipplewood Advisors LLC lifted its holdings in Valero Energy by 3,400.0% during the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock worth $26,000 after purchasing an additional 102 shares in the last quarter. JPL Wealth Management LLC purchased a new stake in Valero Energy during the 3rd quarter worth about $27,000. Financial Life Planners purchased a new stake in Valero Energy during the 1st quarter worth about $28,000. Valued Wealth Advisors LLC lifted its holdings in Valero Energy by 134.0% during the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock worth $29,000 after purchasing an additional 67 shares in the last quarter. Finally, Torren Management LLC purchased a new stake in Valero Energy during the 4th quarter worth about $30,000. Hedge funds and other institutional investors own 78.69% of the company's stock.

Insider Activity at Valero Energy

In other news, SVP Eric A. Fisher sold 8,311 shares of the company's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $227.69, for a total transaction of $1,892,331.59. Following the transaction, the senior vice president owned 42,242 shares of the company's stock, valued at $9,618,080.98. This represents a 16.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.36% of the stock is owned by corporate insiders.

Valero Energy Announces Dividend

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

More Valero Energy News

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

• Positive Sentiment: Valero was highlighted on “best low-beta” stock screens, suggesting investors may be rotating into steadier, less volatile names during market turbulence. Best Low-Beta Stocks to Own Right Away: LQDA, CBOE, VLO & FANG
• Positive Sentiment: Analysts at Erste Group raised FY2027 EPS estimates for Valero, signaling improving earnings expectations. Valero Energy estimate update
• Positive Sentiment: Morgan Stanley lifted its price target on Valero to $232 from $222, pointing to stronger-than-expected first-quarter results and reinforcing a constructive view on the stock. Morgan Stanley Raises its Price Target on Valero Energy (VLO) to $232
• Positive Sentiment: Valero was added to a Zacks Rank #1 “Strong Buy” growth list, which can draw momentum and growth-oriented investors. Best Growth Stocks to Buy for May 7th
• Positive Sentiment: The company declared a quarterly cash dividend of $1.20 per share, confirming shareholder returns and supporting income-investor demand. Valero Energy Corporation Declares Regular Cash Dividend on Common Stock
• Neutral Sentiment: Valero also appeared in PEG-driven “GARP” stock roundups, highlighting its mix of value and growth but offering no new company-specific catalyst. Zacks.com featured highlights include Dow, Valero Energy, Ultrapar Participacoes and Nexa Resources

About Valero Energy

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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