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Valaris Limited (VAL) Stock Analysis

Breakout setup

SellVALUE-TRAP 1/5Moderate Confidence

Energy · Oil & Gas Drilling

Sell if holding. Analyst target reached at $109.59 — A.R:R is negative (-2.8) — 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 2.0x (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

$109.59+2.1% A.UpsideScore 4.5/10#9 of 10 Oil & Gas Drilling
QualityF-score5 / 9FCF yield2.13%
Stop $101.92Target $111.84(resistance)A.R:R -2.8:1
Analyst target$72.92-33.5%8 analysts
$111.84our TP
$109.59price
$72.92mean
$47

Sell if holding. Analyst target reached at $109.59 — A.R:R is negative (-2.8) — 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 2.0x (earnings normalizing). Chart setup: Golden cross, above all MAs, RSI 60, MACD bullish. Score 4.5/10, moderate confidence.

Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 70d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Recent Developments — Valaris Limited

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Sector modifier (Energy): +1.2
Strong earnings beat streak (4/4)
Positive momentum
Risks
Cyclical risk: PE expanding 2.0x (earnings normalizing)
Analyst target reached - limited upside remaining
Near 52-week high (4.0% away)

Key Metrics

P/E (TTM)7.8
P/E (Fwd)15.5
Mkt Cap$7.7B
EV/EBITDA16.0
Profit Mgn45.4%
ROE37.2%
Rev Growth-25.0%
Beta0.97
DividendNone
Rating analysts18

Quality Signals

Piotroski F5/9

Options Flow

P/C0.61bullish
IV57%elevated

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 — -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%).

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

Price Target
1.2
Analyst Rating
5.0
Erm Sentiment
5.0
Below analyst target
GatesA.R:R -2.8=NEGATIVEMomentum 7.2>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 70d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
60 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $89.23Resistance $114.12

Price Targets

$102
$112
A.Upside+2.1%
A.R:R-2.8:1

Position Sizing

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

Risk Alerts

! Target reached (-42.1% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-29 (70d)

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 $109.59 — A.R:R is negative (-2.8) — 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 2.0x (earnings normalizing). Chart setup: Golden cross, above all MAs, RSI 60, MACD bullish. Prior stop was $101.92. Score 4.5/10, moderate confidence.

What is the VAL stock price target?

Take-profit target: $111.84 (+2.1% upside). Prior stop was $101.92. Stop-loss: $101.92.

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 (4.0% away).

Is VAL overvalued or undervalued?

Valaris Limited trades at a P/E of 7.8 (forward 15.5). TrendMatrix value score: 5.9/10. Verdict: Sell.

What do analysts say about VAL?

18 analysts cover VAL with a consensus score of 2.7/5. Average price target: $73.

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)) · SOC (Sable Offshore Corp.) · PDS (Precision Drilling Corporation) · NBR (Nabors Industries Ltd.)