Valero Energy Stock Reaches All-Time High Following Strong Q4 Earnings, Up 3.4% Today

Written by Emily J. Thompson, Senior Investment Analyst

VLO-0.83%

Source: moomoo

Updated: 7h ago

0mins

Source: moomoo

Company Performance: Valero Energy shares hit a record high following a strong performance in Q4, surpassing profit expectations.
Stock Increase: The company's stock rose by 3.4% after the announcement of its quarterly results.

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VLO

$182.49+Infinity%1D

Analyst Views on VLO

Wall Street analysts forecast VLO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLO is 186.56 USD with a low forecast of 149.00 USD and a high forecast of 223.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

17 Analyst Rating

11 Buy

6 Hold

0 Sell

Moderate Buy

Current: 184.020

Low

149.00

Averages

186.56

High

223.00

Current: 184.020

Low

149.00

Averages

186.56

High

223.00

Morgan Stanley

Equal Weight

maintain

$175 -> $180

2026-01-27

New

Reason

Morgan Stanley

Price Target

$175 -> $180

AI Analysis

2026-01-27

New

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on Valero to $180 from $175 and keeps an Equal Weight rating on the shares. Refining stocks have risen by about 10% year-to-date on the back of widening light/heavy differentials following the recent Venezuela events, the analyst noted. Updating for the latest forward cracks, the firm's Q1 EPS estimates for its large-cap refiner coverage are about 5%-10% below consensus on average, the analyst tells investors in a Q4 preview for the group. On a long-term basis, the firm remains constructive on the refining outlook, but it reiterates an In-Line industry view driven by valuation.

Scotiabank

Outperform

maintain

$149 -> $178

2026-01-16

Reason

Scotiabank

Price Target

$149 -> $178

2026-01-16

maintain

Outperform

Reason

Scotiabank raised the firm's price target on Valero to $178 from $149 and keeps an Outperform rating on the shares. The firm is updating its price targets for U.S. Integrated Oil, Refining, and Large Cap Exploration & Production, E&P, stocks under its coverage, the analyst tells investors. Scotiabank expects earnings for the quarter to be straightforward due to the absence of major winter weather disruptions. Additionally, looking ahead, the firm expects investors to focus on whether recent market turmoil will cause changes to 2026 guidance and if any E&P companies will adopt cost reduction programs.

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About VLO

Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The Company sells its products primarily in the United States, Canada, the United Kingdom, Ireland and Latin America. Its segments include Refining, Renewable Diesel, and Ethanol. The Refining segment includes the operations of its petroleum refineries, the associated activities to market its refined petroleum products, and the logistics assets that support its refining operations. The Renewable Diesel segment represents the operations of Diamond Green Diesel (DGD), and the associated activities to market renewable diesel, renewable naphtha, and neat SAF. The Ethanol segment includes the operations of its ethanol plants and the associated activities to market its ethanol and co-products. It owns 15 petroleum refineries located in the United States, Canada and the United Kingdom.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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Top News

Valero Energy Corporation Q4 2025 Earnings Highlights

1 hour agoseekingalpha

Record Financial Performance: Valero achieved a net income of $1.1 billion or $3.73 per share in Q4 2025, significantly up from $281 million or $0.88 per share in Q4 2024, demonstrating the company's exceptional performance amid strong refining margins and market demand.
Increased Refining Capacity Utilization: The fourth quarter saw refining throughput reach 3.1 million barrels per day with a utilization rate of 98%, marking record highs for both the quarter and the full year, reflecting the company's ongoing progress in operational efficiency and market adaptability.
Increased Shareholder Returns: The company announced a 6% increase in quarterly cash dividends to $3.73 per share, with total shareholder cash returns of $1.4 billion for the quarter, indicating a strong commitment to shareholder value while maintaining financial health and boosting investor confidence.
Future Investment Plans: Valero expects capital investments of approximately $1.7 billion for 2026, with $1.4 billion allocated to sustaining operations and the remainder to optimization projects, highlighting the company's focus on efficient capital allocation and risk management while pursuing growth.