FY2026 EPS Estimates for Valero Energy Raised by Scotiabank

Key Points

• Scotiabank raised FY2026 EPS estimates for Valero Energy to $27.10 from $25.85 and kept a Sector Outperform rating with a $226 price target. The firm also projected FY2027 EPS of $26.15.
• Valero’s latest quarterly results beat expectations, with EPS of $4.22 versus the $3.16 consensus and revenue of $32.38 billion versus estimates of $31.38 billion. Revenue rose 7.0% year over year.
• The company announced a quarterly dividend of $1.20 per share, payable June 23, implying an annualized dividend of $4.80 and a 2.0% yield. Valero also has a low debt-to-equity ratio of 0.39 and shares recently traded near their 1-year high.

Valero Energy Corporation (NYSE:VLO - Free Report) - Equities research analysts at Scotiabank upped their FY2026 earnings estimates for Valero Energy in a report issued on Thursday, May 14th. Scotiabank analyst B. Zhang now expects that the oil and gas company will post earnings per share of $27.10 for the year, up from their previous estimate of $25.85. Scotiabank currently has a "Sector Outperform" rating and a $226.00 target price on the stock. The consensus estimate for Valero Energy's current full-year earnings is $28.02 per share. Scotiabank also issued estimates for Valero Energy's FY2027 earnings at $26.15 EPS.

VLO has been the subject of several other research reports. Morgan Stanley raised their price objective on shares of Valero Energy from $182.00 to $222.00 and gave the stock an "equal weight" rating in a report on Friday, April 24th. UBS Group raised their price target on shares of Valero Energy from $215.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, April 2nd. Raymond James Financial raised their price target on shares of Valero Energy from $215.00 to $290.00 and gave the company a "strong-buy" rating in a report on Wednesday, March 25th. Barclays raised their price target on shares of Valero Energy from $184.00 to $261.00 and gave the company an "overweight" rating in a report on Wednesday, April 8th. Finally, Wells Fargo & Company raised their price target on shares of Valero Energy from $220.00 to $292.00 and gave the company an "overweight" rating in a report on Tuesday, March 31st. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $237.94.

Valero Energy Stock Performance

NYSE VLO opened at $244.55 on Friday. The firm has a market cap of $72.61 billion, a price-to-earnings ratio of 17.77, a PEG ratio of 0.34 and a beta of 0.58. The company has a 50 day moving average of $238.49 and a 200-day moving average of $201.34. The company has a current ratio of 1.58, a quick ratio of 1.15 and a debt-to-equity ratio of 0.39. Valero Energy has a 1-year low of $125.10 and a 1-year high of $258.43.

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

Hedge Funds Weigh In On Valero Energy

Institutional investors and hedge funds have recently made changes to their positions in the company. Whipplewood Advisors LLC grew its holdings in shares of Valero Energy by 3,400.0% in the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock valued at $26,000 after buying an additional 102 shares during the period. Financial Life Planners acquired a new position in shares of Valero Energy in the 1st quarter valued at $28,000. Valued Wealth Advisors LLC grew its holdings in shares of Valero Energy by 134.0% in the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock valued at $29,000 after buying an additional 67 shares during the period. Global Assets Advisory LLC acquired a new position in shares of Valero Energy in the 1st quarter valued at $33,000. Finally, JPL Wealth Management LLC acquired a new position in shares of Valero Energy in the 3rd quarter valued at $27,000. Institutional investors and hedge funds own 78.69% of the company's stock.

Insider Activity

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

Valero Energy Announces Dividend

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

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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