Valero Energy (NYSE:VLO) Stock Price Up 1.7% After Analyst Upgrade

Key Points

• Valero shares rose 1.7% after Citigroup lifted its price target from $485 to $490, although it maintained a neutral rating. The broader analyst consensus remains “Moderate Buy,” with a $379.94 average target.
• Valero reported a strong quarter, posting $23.90 in earnings per share and $46.10 billion in revenue, beating estimates of $21.17 EPS and $42.71 billion in revenue; revenue increased 43.3% year over year.
• Despite improving earnings expectations and analyst support, investors face risks from volatile crude prices, fuel demand, refining margins and valuation concerns, with some analysts warning of weaker refining profits ahead.

Valero Energy Corporation (NYSE:VLO - Get Free Report) shot up 1.7% during mid-day trading on Monday after Citigroup raised their price target on the stock from $485.00 to $490.00. Citigroup currently has a neutral rating on the stock. Valero Energy traded as high as $436.20 and last traded at $426.2320. Approximately 2,217,919 shares traded hands during trading, a decline of 33% from the average daily volume of 3,287,494 shares. The stock had previously closed at $419.28.

Other equities research analysts also recently issued research reports about the stock. UBS Group restated a "buy" rating and issued a $467.00 price target on shares of Valero Energy in a research report on Tuesday, October 6th. Wells Fargo & Company lifted their price objective on shares of Valero Energy from $485.00 to $489.00 and gave the stock an "overweight" rating in a research report on Friday. Weiss Ratings raised shares of Valero Energy from a "buy (b)" rating to a "buy (b+)" rating in a research note on Thursday, October 8th. Raymond James Financial increased their target price on Valero Energy from $350.00 to $450.00 and gave the company a "strong-buy" rating in a report on Monday, September 14th. Finally, Morgan Stanley increased their target price on Valero Energy from $255.00 to $411.00 and gave the company an "equal weight" rating in a report on Monday, September 14th. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Valero Energy presently has an average rating of "Moderate Buy" and a consensus price target of $379.94.

Valero Energy News Roundup

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

• Positive Sentiment: Positive earnings outlook: Zacks said Valero could continue gaining because analysts have been revising earnings estimates higher, a signal that expectations for near-term results are improving. Why Valero Energy Might Be Well Poised for a Surge
• Positive Sentiment: Growth and valuation support: Zacks identified several growth attributes that could help VLO outperform the broader market. Its latest quarter also exceeded consensus estimates, with earnings of $23.90 per share and revenue of $46.10 billion. Is Valero Energy a Solid Growth Stock?
• Positive Sentiment: Analyst support: Citigroup expects further price appreciation, Barclays forecast strong gains, and the broader analyst view cited by American Banking News is “Moderate Buy.” Citigroup Valero Price Forecast
• Neutral Sentiment: Potential hedge with trade-offs: Valero may offer defensive benefits amid energy-market uncertainty, but its performance remains highly dependent on volatile crude prices, fuel demand and refining margins. Valero: A Potential Hedge, But Not Without Trade-Offs
• Negative Sentiment: Valuation and outlook concerns: Investor Michael Burry is considering reducing or selling VLO after its strong run, citing stretched valuations. Separately, light fourth-quarter guidance, possible Russian diesel competition and crude-price pressure have raised concerns about weaker refining profits ahead. Michael Burry Eyes the Exit on Valero Valero’s Windfall Quarter Meets Washington’s Push for Cheaper Diesel

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Blue Zone Wealth Advisors LLC grew its holdings in shares of Valero Energy by 2.4% during the 3rd quarter. Blue Zone Wealth Advisors LLC now owns 1,027 shares of the oil and gas company's stock valued at $398,000 after acquiring an additional 24 shares in the last quarter. Grove Bank & Trust lifted its holdings in Valero Energy by 1.0% in the 3rd quarter. Grove Bank & Trust now owns 2,608 shares of the oil and gas company's stock worth $1,011,000 after purchasing an additional 25 shares during the last quarter. Sigma Planning Corp lifted its stake in shares of Valero Energy by 0.4% in the third quarter. Sigma Planning Corp now owns 7,171 shares of the oil and gas company's stock worth $2,779,000 after buying an additional 29 shares during the last quarter. Cornerstone Financial Management LLC boosted its holdings in Valero Energy by 57.6% during the second quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company's stock valued at $27,000 after acquiring an additional 38 shares during the period. Finally, V Square Quantitative Management LLC boosted its stake in Valero Energy by 0.6% during the 1st quarter. V Square Quantitative Management LLC now owns 6,670 shares of the oil and gas company's stock valued at $1,648,000 after purchasing an additional 42 shares during the period. Institutional investors and hedge funds own 78.69% of the company's stock.

Valero Energy Stock Performance

The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. The firm has a market cap of $122.72 billion, a price-to-earnings ratio of 9.59, a P/E/G ratio of 0.24 and a beta of 0.59. The firm's 50 day moving average price is $393.03 and its 200-day moving average price is $310.61.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 EPS for the quarter, beating analysts' consensus estimates of $21.17 by $2.73. The business had revenue of $46.10 billion during the quarter, compared to analyst estimates of $42.71 billion. Valero Energy had a net margin of 8.44% and a return on equity of 47.50%. The firm's revenue for the quarter was up 43.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.66 earnings per share. On average, analysts anticipate that Valero Energy Corporation will post 54.22 earnings per share for the current year.

Valero Energy Company Profile

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. The company's primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.

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