Erste Group Bank Expects Stronger Earnings for Valero Energy

Valero Energy Corporation (NYSE:VLO) – Research analysts at Erste Group Bank raised their FY2027 earnings estimates for shares of Valero Energy in a research report issued on Tuesday, March 24th. Erste Group Bank analyst H. Engel now anticipates that the oil and gas company will post earnings of $13.27 per share for the year, up from their previous forecast of $12.59. The consensus estimate for Valero Energy’s current full-year earnings is $7.92 per share.

Valero Energy (NYSE:VLO) last released its earnings results on Thursday, January 29th. The oil and gas company reported $3.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.27 by $0.55. The company had revenue of $30.37 billion during the quarter, compared to analyst estimates of $28.20 billion. Valero Energy had a return on equity of 12.35% and a net margin of 1.91%.The company’s revenue for the quarter was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.64 earnings per share.

A number of other equities research analysts have also commented on VLO. Citigroup raised their price objective on Valero Energy from $190.00 to $212.00 and gave the stock a “neutral” rating in a research report on Monday, February 9th. JPMorgan Chase & Co. upped their target price on Valero Energy from $197.00 to $200.00 and gave the company an “overweight” rating in a report on Thursday, January 8th. Weiss Ratings reissued a “hold (c)” rating on shares of Valero Energy in a research report on Wednesday, January 21st. Zacks Research downgraded shares of Valero Energy from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 20th. Finally, Morgan Stanley upped their price objective on shares of Valero Energy from $175.00 to $180.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 27th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $199.53.

Valero Energy Stock Up 2.6%

NYSE:VLO opened at $254.58 on Thursday. The firm has a market capitalization of $76.13 billion, a price-to-earnings ratio of 33.32, a PEG ratio of 0.62 and a beta of 0.70. Valero Energy has a 1-year low of $99.00 and a 1-year high of $255.97. The company has a current ratio of 1.64, a quick ratio of 1.11 and a debt-to-equity ratio of 0.36. The business’s fifty day moving average price is $209.25 and its 200 day moving average price is $183.67.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Rockefeller Capital Management L.P. increased its position in Valero Energy by 7.8% during the fourth quarter. Rockefeller Capital Management L.P. now owns 104,198 shares of the oil and gas company’s stock worth $16,963,000 after buying an additional 7,580 shares during the last quarter. World Investment Advisors lifted its position in shares of Valero Energy by 32.4% in the fourth quarter. World Investment Advisors now owns 6,188 shares of the oil and gas company’s stock worth $1,007,000 after buying an additional 1,514 shares during the last quarter. Larry Mathis Financial Planning LLC acquired a new stake in shares of Valero Energy in the fourth quarter worth about $314,000. Corient Private Wealth LLC boosted its stake in shares of Valero Energy by 5.5% during the 4th quarter. Corient Private Wealth LLC now owns 235,035 shares of the oil and gas company’s stock worth $38,264,000 after acquiring an additional 12,295 shares in the last quarter. Finally, Hsbc Holdings PLC boosted its stake in shares of Valero Energy by 30.1% during the 4th quarter. Hsbc Holdings PLC now owns 685,506 shares of the oil and gas company’s stock worth $111,543,000 after acquiring an additional 158,470 shares in the last quarter. Institutional investors and hedge funds own 78.69% of the company’s stock.

Insider Transactions at Valero Energy

In other Valero Energy news, SVP Eric A. Fisher sold 400 shares of Valero Energy stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $238.60, for a total value of $95,440.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.04% of the stock is owned by company insiders.

Valero Energy Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 9th. Investors of record on Thursday, February 5th were given a dividend of $1.20 per share. The ex-dividend date of this dividend was Thursday, February 5th. This is a boost from Valero Energy’s previous quarterly dividend of $1.13. This represents a $4.80 annualized dividend and a yield of 1.9%. Valero Energy’s payout ratio is 62.83%.

More Valero Energy News

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

• Positive Sentiment: Crack spreads and an upgrade boosted profit expectations for refiners — analysts and investors are lifting VLO on improving refining margins, a key driver of near‑term cash flow. Valero Energy Shares Follow Crack Spreads Higher (Rating Upgrade)
• Positive Sentiment: Analyst bullishness increased: Raymond James raised its price target to $290 and Scotiabank reaffirmed a buy — both add upside narrative and institutional support. Raymond James Financial Raises Valero Energy (NYSE:VLO) Price Target to $290.00 Scotiabank Reaffirms Their Buy Rating on Valero Energy (VLO)
• Positive Sentiment: Erste Group raised FY2026 and FY2027 EPS forecasts materially, signaling expectations for much higher earnings than consensus — this lifts forward valuation metrics for VLO. (Research note cited by market coverage.)
• Positive Sentiment: Operational recovery: Valero has begun restarting its 380k bpd Port Arthur refinery after the recent explosion, which reduces near‑term production disruption risk and supports revenue recovery. Valero begins restart of Port Arthur, Texas refinery, sources say
• Positive Sentiment: Sector tailwinds: Energy stocks and oil prices have rallied on Middle East tensions, lifting refiners’ top lines and supporting VLO’s momentum. Wall Street follows global markets lower with missiles fired at Israel and confusion on peace talks
• Neutral Sentiment: Macro headwinds: rising global bond yields and growing odds of further Fed tightening are increasing equity volatility and could cap multiple expansion for cyclical names like VLO. US Stock Market Today S&P 500 Futures Steady As Rate Hike Worries Build
• Negative Sentiment: Legal & safety overhang: a worker sued Valero over injuries from the Port Arthur explosion seeking damages; while the suit appears limited in dollar size vs. market cap, it raises operational/safety scrutiny and potential legal costs. Valero has responded publicly. Worker sues Valero over Texas refinery explosion

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.