In-Depth Examination Of 12 Analyst Recommendations For Valero Energy

In the latest quarter, 12 analysts provided ratings for Valero Energy VLO, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Valero Energy, revealing an average target of $152.58, a high estimate of $176.00, and a low estimate of $123.00. Highlighting a 9.37% decrease, the current average has fallen from the previous average price target of $168.36.

Decoding Analyst Ratings: A Detailed Look

The standing of Valero Energy among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Valero Energy. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Valero Energy compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Valero Energy's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Valero Energy's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Valero Energy analyst ratings.

Delving into Valero Energy's Background

Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which has the capacity to produce 1.2 billion gallons per year of renewable diesel.

A Deep Dive into Valero Energy's Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Challenges: Valero Energy's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.06%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Net Margin: Valero Energy's net margin excels beyond industry benchmarks, reaching 2.54%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Valero Energy's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.41%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Valero Energy's ROA excels beyond industry benchmarks, reaching 1.39%. This signifies efficient management of assets and strong financial health.

Debt Management: Valero Energy's debt-to-equity ratio is below the industry average at 0.42, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.