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VALValaris LimitedSell4.3·$87.49-4.27%
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Valaris Limited (VAL) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Energy · Oil & Gas Drilling

Sell if holding. Analyst target reached at $87.49 — A.R:R is negative (-3.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Cyclical risk: PE expanding 1.9x (earnings normalizing).

Valaris is a global offshore contract drilling company with 46 owned rigs (13 drillships, 2 semisubmersibles, 31 jackups) plus a 50% JV stake in ARO (9 additional rigs), providing drilling services to oil and gas companies across six continents. Revenue comes from day rate... Read more

$87.49+27.8% A.UpsideScore 4.3/10#10 of 10 Oil & Gas Drilling
QualityF-score5 / 9FCF yield2.59%
Stop $83.89Target $111.84(resistance)A.R:R -3.1:1
Analyst target$69.82-20.2%9 analysts
$111.84our TP
$87.49price
$69.82mean
$45
$112

Sell if holding. Analyst target reached at $87.49 — A.R:R is negative (-3.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Cyclical risk: PE expanding 1.9x (earnings normalizing). Chart setup: No clear chart pattern; technical signals are mixed. Score 4.3/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 50d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-09
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Jul 29, 202650d to earnings· next earnings call

Thesis

Rewards
Sector modifier (Energy): +1.2
Margin of safety: 57%
Risks
Cyclical risk: PE expanding 1.9x (earnings normalizing)
Analyst target reached - limited upside remaining
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.9)

Key Metrics

P/E (TTM)6.5
P/E (Fwd)12.5
Mkt Cap$6.3B
EV/EBITDA13.4
Profit Mgn45.4%
ROE37.2%
Rev Growth-25.0%
Beta0.90
DividendNone
Rating analysts17

Quality Signals

Piotroski F5/9

Options Flow

P/C0.09bullish
IV66%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Revenue shrinking — -25.0% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.0
Declining revenue: -25%
Low model confidence on this dimension (33%).

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Volume
3.9
Ma Position
4.0
Rsi
9.0
Oversold in uptrend (RSI 15)Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.6<4.5A.R:R -3.1=NEGATIVEInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 50d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
15 · Oversold
↓ 20D MA↓ 50D MA↑ 200D MAGOLDEN CROSSSupport $86.48Resistance $114.12

Price Targets

$84
$112
A.Upside+27.8%
A.R:R-3.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-30.6% upside)
! momentum at 3.6 (below the engine's 4.5 threshold)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-29 (50d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is VAL stock a buy right now?

Sell if holding. Analyst target reached at $87.49 — A.R:R is negative (-3.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Cyclical risk: PE expanding 1.9x (earnings normalizing). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $83.89. Score 4.3/10, moderate confidence.

What is the VAL stock price target?

Take-profit target: $111.84 (+27.8% upside). Prior stop was $83.89. Stop-loss: $83.89.

What are the risks of investing in VAL?

Cyclical risk: PE expanding 1.9x (earnings normalizing); Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.9).

Is VAL overvalued or undervalued?

Valaris Limited trades at a P/E of 6.5 (forward 12.5). TrendMatrix value score: 6.5/10. Verdict: Sell.

What do analysts say about VAL?

17 analysts cover VAL with a consensus score of 2.7/5. Average price target: $70.

What does Valaris Limited do?Valaris is a global offshore contract drilling company with 46 owned rigs (13 drillships, 2 semisubmersibles, 31...

Valaris is a global offshore contract drilling company with 46 owned rigs (13 drillships, 2 semisubmersibles, 31 jackups) plus a 50% JV stake in ARO (9 additional rigs), providing drilling services to oil and gas companies across six continents. Revenue comes from day rate contracts; Petrobras, BP, and Azule each exceeded 10% of consolidated revenues in 2025. In February 2026, Valaris announced a business combination with Transocean.

Related stocks: BORR (Borr Drilling Limited) · RIG (Transocean Ltd (Switzerland)) · PDS (Precision Drilling Corporation) · SOC (Sable Offshore Corp.) · NBR (Nabors Industries Ltd.)
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