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Valaris Limited (VAL) Stock Analysis

Breakout setup

Buy WaitModerate Confidence

Energy · Oil & Gas Equipment & Services

Earnings in 3 days (2026-05-04). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Wait for pullback to $88.94. BUY gates pass at $101.83, but cyclical risk: PE expanding 2.0x (earnings normalizing) and analyst target reached - limited upside remaining argue for a more patient entry. Engine's entry $88.94 (support + ATR) is the shallowest technical level that clears the 2:1 A.R:R minimum.

Valaris Limited is a global offshore contract drilling company operating 46 rigs (13 drillships, 2 semisubmersibles, 31 jackup rigs) across six continents. It earns revenue on day rate contracts from international and government-owned oil and gas companies. A pending merger with... Read more

$101.83+15.3% A.UpsideScore 4.8/10#24 of 32 Oil & Gas Equipment & Services
Entry $88.94(support + ATR)Stop $84.27Target $102.53(resistance)A.R:R -2.7:1Setup A.R:R 2.9:1
Analyst target$70.67-30.6%8 analysts
$102.53our TP
$101.83price
$70.67mean
$47

Wait for pullback to $88.94. BUY gates pass at $101.83, but cyclical risk: PE expanding 2.0x (earnings normalizing) and analyst target reached - limited upside remaining argue for a more patient entry. Engine's entry $88.94 (support + ATR) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Golden cross, above all MAs, RSI 54, MACD bullish. Earnings in 3 days. Wait until post-earnings. Score 4.8/10, moderate confidence.

Passes 5/7 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 3d<=7d. Suitability: moderate.

Thesis

Rewards
No bull case signals
Risks
Cyclical risk: PE expanding 2.0x (earnings normalizing)
Analyst target reached - limited upside remaining
Near 52-week high (3.3% away)

Key Metrics

P/E (TTM)7.4
P/E (Fwd)14.5
Mkt Cap$7.1B
EV/EBITDA11.9
Profit Mgn41.5%
ROE36.2%
Rev Growth-8.0%
Beta1.04
DividendNone
Rating analysts18

Quality Signals

Piotroski F7/9

Options Flow

P/C0.16bullish
IV64%elevated

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomertop-5 customers49%
    10-K Item 1A: 'our five largest customers accounted for 49% of consolidated revenues ... with our largest customer representing 13% of our consolidated revenues'

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

Rating Breakdown

2 floor-breakers

Revenue shrinking — -8.0% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.5
Declining revenue: -8%
Low model confidence on this dimension (33%).

Negative sentiment — recent news tone and/or analyst downgrades drag the composite below neutral.static

Price Target
1.4
Analyst Rating
5.0
Erm Sentiment
5.0
Below analyst target
GatesA.R:R -2.7=NEGATIVEEARNINGS PROXIMITY 3d<=7dMomentum 6.9>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
54 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $86.88Resistance $104.62

Price Targets

$84
$89
$103
A.Upside+0.7%
A.R:R-2.7:1
Setup A.R:R (at entry)2.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Target reached (-39.6% upside)
! Earnings in 3 days - binary event risk
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-04 (3d)

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?

Wait for pullback to $88.94. BUY gates pass at $101.83, but cyclical risk: PE expanding 2.0x (earnings normalizing) and analyst target reached - limited upside remaining argue for a more patient entry. Engine's entry $88.94 (support + ATR) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Golden cross, above all MAs, RSI 54, MACD bullish. Earnings in 3 days. Wait until post-earnings. Target $102.53 (+0.7%), stop $84.27 (−20.8%), Setup A.R:R 2.9:1. Score 4.8/10, moderate confidence.

What is the VAL stock price target?

Take-profit target: $102.53 (+15.3% upside). Target $102.53 (+0.7%), stop $84.27 (−20.8%), Setup A.R:R 2.9:1. Stop-loss: $84.27.

What are the risks of investing in VAL?

Cyclical risk: PE expanding 2.0x (earnings normalizing); Analyst target reached - limited upside remaining; Near 52-week high (3.3% away).

Is VAL overvalued or undervalued?

Valaris Limited trades at a P/E of 7.4 (forward 14.5). TrendMatrix value score: 7.3/10. Verdict: Buy (Wait for Entry).

What do analysts say about VAL?

18 analysts cover VAL with a consensus score of 2.7/5. Average price target: $71.

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

Valaris Limited is a global offshore contract drilling company operating 46 rigs (13 drillships, 2 semisubmersibles, 31 jackup rigs) across six continents. It earns revenue on day rate contracts from international and government-owned oil and gas companies. A pending merger with Transocean was announced February 9, 2026.

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