Zacks Research Forecasts Higher Earnings for Valero Energy

Key Points

• Zacks Research raised its FY2025 earnings estimate for Valero Energy to $6.48 per share, representing a slight increase from the previous forecast of $6.47.
• Valero Energy reported $2.28 EPS for its recent quarter, exceeding the consensus estimate of $1.66 by 62 cents, though revenue was down 13.3% year-over-year.
• Multiple brokerages have recently adjusted their ratings and price targets for Valero Energy, with Raymond James increasing its target from $155 to $172 and Goldman Sachs upgrading from "neutral" to "buy."

Valero Energy Corporation (NYSE:VLO - Free Report) - Equities research analysts at Zacks Research raised their FY2025 earnings estimates for shares of Valero Energy in a note issued to investors on Wednesday, September 3rd. Zacks Research analyst Team now expects that the oil and gas company will post earnings of $6.48 per share for the year, up from their previous forecast of $6.47. The consensus estimate for Valero Energy's current full-year earnings is $7.92 per share. Zacks Research also issued estimates for Valero Energy's Q4 2025 earnings at $1.09 EPS and Q1 2027 earnings at $2.22 EPS.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data on Thursday, July 24th. The oil and gas company reported $2.28 earnings per share for the quarter, beating the consensus estimate of $1.66 by $0.62. Valero Energy had a net margin of 0.62% and a return on equity of 5.76%. The business had revenue of $29.89 billion for the quarter, compared to analyst estimates of $27 billion. During the same period in the prior year, the business posted $2.71 earnings per share. Valero Energy's revenue was down 13.3% compared to the same quarter last year.

A number of other brokerages have also recently commented on VLO. Raymond James Financial lifted their price objective on Valero Energy from $155.00 to $172.00 and gave the stock a "strong-buy" rating in a research note on Tuesday, July 15th. Evercore ISI started coverage on Valero Energy in a report on Wednesday, June 18th. They set an "in-line" rating and a $135.00 target price on the stock. Morgan Stanley upped their price target on Valero Energy from $145.00 to $160.00 and gave the company an "overweight" rating in a research note on Wednesday, July 16th. Citigroup downgraded shares of Valero Energy from a "buy" rating to a "neutral" rating and increased their price target for the company from $134.00 to $150.00 in a research report on Wednesday, July 16th. Finally, The Goldman Sachs Group upgraded shares of Valero Energy from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $127.00 to $154.00 in a report on Tuesday, May 13th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $156.40.

Valero Energy Stock Performance

Shares of Valero Energy stock opened at $155.40 on Friday. The firm has a fifty day moving average of $143.00 and a two-hundred day moving average of $131.97. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.11 and a current ratio of 1.62. The stock has a market capitalization of $48.28 billion, a price-to-earnings ratio of 64.75, a PEG ratio of 3.63 and a beta of 1.10. Valero Energy has a 52 week low of $99.00 and a 52 week high of $159.26.

Valero Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 2nd. Investors of record on Thursday, July 31st were paid a dividend of $1.13 per share. This represents a $4.52 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend was Thursday, July 31st. Valero Energy's dividend payout ratio is presently 188.33%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Osaic Holdings Inc. boosted its holdings in shares of Valero Energy by 2.7% in the second quarter. Osaic Holdings Inc. now owns 99,529 shares of the oil and gas company's stock valued at $13,373,000 after buying an additional 2,631 shares during the period. Evolution Wealth Management Inc. bought a new stake in Valero Energy in the 2nd quarter valued at $43,000. Lavaca Capital LLC acquired a new position in Valero Energy in the 2nd quarter worth $54,000. Thrivent Financial for Lutherans boosted its stake in Valero Energy by 16.8% in the 2nd quarter. Thrivent Financial for Lutherans now owns 48,377 shares of the oil and gas company's stock worth $6,511,000 after purchasing an additional 6,954 shares during the period. Finally, MASTERINVEST Kapitalanlage GmbH bought a new position in Valero Energy during the 2nd quarter worth about $273,000. Institutional investors own 78.69% of the company's stock.

About Valero Energy

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol.

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