Zacks Research Expects Stronger Earnings for Valero Energy

Valero Energy Co. (NYSE:VLO) – Investment analysts at Zacks Research boosted their Q1 2026 earnings estimates for shares of Valero Energy in a research report issued to clients and investors on Tuesday, January 28th. Zacks Research analyst R. Department now forecasts that the oil and gas company will post earnings of $2.87 per share for the quarter, up from their previous forecast of $2.72. The consensus estimate for Valero Energy’s current full-year earnings is $7.92 per share.

Valero Energy (NYSE:VLO) last posted its quarterly earnings results on Thursday, January 30th. The oil and gas company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.50. Valero Energy had a net margin of 2.74% and a return on equity of 13.07%.

Several other brokerages also recently commented on VLO. Wells Fargo & Company reduced their target price on shares of Valero Energy from $165.00 to $160.00 and set an “overweight” rating on the stock in a research note on Monday, December 9th. Piper Sandler raised shares of Valero Energy from a “hold” rating to a “strong-buy” rating in a report on Friday, January 10th. Barclays reduced their target price on Valero Energy from $146.00 to $140.00 and set an “overweight” rating on the stock in a report on Monday, November 11th. Mizuho dropped their price target on Valero Energy from $165.00 to $158.00 and set an “outperform” rating for the company in a report on Wednesday, January 8th. Finally, TD Cowen decreased their target price on Valero Energy from $145.00 to $140.00 and set a “buy” rating on the stock in a report on Friday, October 25th. One analyst has rated the stock with a sell rating, three have issued a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Valero Energy presently has a consensus rating of “Moderate Buy” and a consensus price target of $154.54.

Valero Energy Price Performance

Valero Energy stock opened at $135.36 on Friday. The business has a 50 day simple moving average of $131.11 and a 200 day simple moving average of $137.72. Valero Energy has a one year low of $116.84 and a one year high of $184.79. The company has a market capitalization of $42.85 billion, a PE ratio of 12.14, a price-to-earnings-growth ratio of 2.81 and a beta of 1.42. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.57 and a quick ratio of 1.11.

Valero Energy Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 3rd. Shareholders of record on Thursday, January 30th will be issued a dividend of $1.13 per share. The ex-dividend date is Thursday, January 30th. This represents a $4.52 dividend on an annualized basis and a yield of 3.34%. This is a boost from Valero Energy’s previous quarterly dividend of $1.07. Valero Energy’s dividend payout ratio (DPR) is 38.39%.

Institutional Trading of Valero Energy

Several hedge funds have recently added to or reduced their stakes in VLO. Allspring Global Investments Holdings LLC raised its position in Valero Energy by 1.8% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,293,589 shares of the oil and gas company’s stock valued at $174,673,000 after buying an additional 22,571 shares during the last quarter. Kieckhefer Group LLC acquired a new position in shares of Valero Energy during the 4th quarter worth about $1,226,000. Hudson Capital Management LLC grew its holdings in shares of Valero Energy by 6.5% in the 4th quarter. Hudson Capital Management LLC now owns 31,792 shares of the oil and gas company’s stock valued at $3,897,000 after acquiring an additional 1,937 shares in the last quarter. Miracle Mile Advisors LLC acquired a new stake in shares of Valero Energy in the fourth quarter valued at about $274,000. Finally, Captrust Financial Advisors raised its holdings in Valero Energy by 7.5% during the third quarter. Captrust Financial Advisors now owns 89,762 shares of the oil and gas company’s stock worth $12,121,000 after acquiring an additional 6,278 shares in the last quarter. Institutional investors and hedge funds 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.