Valero Energy (NYSE:VLO) Upgraded by Zacks Research to "Strong-Buy" Rating

Key Points

• Zacks Research upgraded Valero to a "Strong-Buy" from "Hold," joining other recent analyst upward moves; the stock's consensus is a Moderate Buy with an average price target of $228.18.
• Valero recently beat quarterly estimates (EPS $3.82 vs. $3.27; revenue $30.37B vs. $28.20B) and is trading around $234 with a market cap of $70.06B and a PE of 30.67, while analysts project roughly 19.03 EPS for the year.
• Analysts point to stronger refinery margins, a diesel-price spike and renewable-fuels exposure supporting near-term earnings and capital returns, though some firms (e.g., Wolfe Research) warn the stock may be priced for peak margins.

Valero Energy (NYSE:VLO - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Tuesday,Zacks.com reports.

Several other brokerages also recently issued reports on VLO. JPMorgan Chase & Co. raised their price objective on shares of Valero Energy from $197.00 to $200.00 and gave the stock an "overweight" rating in a research report on Thursday, January 8th. Citigroup raised their target price on shares of Valero Energy from $212.00 to $246.00 and gave the stock a "neutral" rating in a report on Wednesday, April 15th. BMO Capital Markets raised their target price on shares of Valero Energy from $230.00 to $270.00 and gave the stock an "outperform" rating in a report on Monday, April 6th. Piper Sandler raised their target price on shares of Valero Energy from $236.00 to $263.00 and gave the stock an "overweight" rating in a report on Wednesday, April 8th. Finally, Argus raised shares of Valero Energy to a "hold" rating in a report on Monday, February 2nd. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Valero Energy presently has a consensus rating of "Moderate Buy" and an average price target of $228.18.

Valero Energy Trading Up 0.4%

Shares of VLO stock opened at $234.30 on Tuesday. The firm has a 50 day moving average price of $227.10 and a two-hundred day moving average price of $193.15. The company has a quick ratio of 1.11, a current ratio of 1.64 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $70.06 billion, a PE ratio of 30.67, a price-to-earnings-growth ratio of 0.46 and a beta of 0.62. Valero Energy has a 12-month low of $110.00 and a 12-month high of $258.43.

Valero Energy (NYSE:VLO - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The oil and gas company reported $3.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.27 by $0.55. The firm had revenue of $30.37 billion during the quarter, compared to the consensus estimate of $28.20 billion. Valero Energy had a net margin of 1.91% and a return on equity of 12.35%. The business's revenue for the quarter was down 1.2% compared to the same quarter last year. During the same period last year, the business posted $0.64 earnings per share. As a group, analysts predict that Valero Energy will post 19.03 earnings per share for the current year.

Insider Activity at Valero Energy

In other news, SVP Eric A. Fisher sold 8,311 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $227.69, for a total transaction of $1,892,331.59. Following the transaction, 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 can be accessed through this hyperlink. Corporate insiders own 0.36% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in VLO. Norges Bank bought a new position in Valero Energy in the fourth quarter valued at approximately $1,111,542,000. Arrowstreet Capital Limited Partnership bought a new position in Valero Energy in the third quarter valued at approximately $275,239,000. Pacer Advisors Inc. increased its stake in Valero Energy by 2,635.7% in the fourth quarter. Pacer Advisors Inc. now owns 950,527 shares of the oil and gas company's stock valued at $154,736,000 after acquiring an additional 915,782 shares during the last quarter. Victory Capital Management Inc. increased its stake in Valero Energy by 49.3% in the fourth quarter. Victory Capital Management Inc. now owns 1,696,811 shares of the oil and gas company's stock valued at $276,224,000 after acquiring an additional 560,116 shares during the last quarter. Finally, Franklin Resources Inc. increased its stake in 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 valued at $922,728,000 after acquiring an additional 394,693 shares during the last quarter. 78.69% of the stock is owned by institutional investors.

More Valero Energy News

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

• Positive Sentiment: Zacks added VLO to its Rank #1 (Strong Buy) / momentum lists this morning, a visible retail- and quant-focused endorsement that can attract short‑term buying and ETF/overlay flows. New Strong Buy Stocks for April 22nd
• Positive Sentiment: Analysts and commentators are flagging sustained upside from refinery margins, diesel strength and Valero’s capital returns — Seeking Alpha highlights potential windfall profits, large EBITDA scenarios and a buyback/dividend-driven 14% capital return case that supports higher long-term valuation. Valero: Windfall Profits Lead To 14% Capital Returns
• Positive Sentiment: Macro/refining tailwind — diesel prices have jumped and outlets note Valero as a beneficiary of the spike and of its push into renewable fuels, which supports near‑term earnings and sentiment. Diesel Is Up 50% in Weeks. Here Are 2 Stocks Quietly Benefiting From the Spike.
• Neutral Sentiment: Scotiabank raised its Valero price target sharply (from $178 to $226) and upgraded to “sector outperform” — a positive signal — but the PT still sits slightly below the current share price, making the net impact mixed for immediate upside. Benzinga
• Neutral Sentiment: Broad sector/peer headlines (BP earnings preview, offshore rig revenue notes like Nabors) are worth watching because refining margins and oil prices drive Valero’s earnings sensitivity, but these are indirect and won’t necessarily move VLO alone. Important Factors to Watch Ahead of BP's Q1 Earnings Release
• Negative Sentiment: Wolfe Research reiterated an “underperform” view and a $203 price target (well below the current level), and related analyst commentary flagged that Valero may be priced for peak margins and unsustainable cash flows — this can pressure sentiment and trigger profit-taking or a re-rating if investors follow the call. Valero: Priced for Peak Margins and Unsustainable Cash Flows, Warranting a Sell Rating

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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