- House lawmakers pass year-round nationwide sales of higher-ethanol gasoline
May 14, 2026
[ethanol, biofuel, automotive fueling at gas stations]
Lima
The U.S. House of Representatives passed legislation [https://www.bloomberg.com/news/articles/2026-05-13/higher-ethanol-gasoline-wins-house-vote-in-boost-for-biofuels] Wednesday to allow year-round sales of higher-ethanol E15 gasoline across the U.S., in a victory for corn farmers after more than a decade of failed attempts to expand the market for E15.
The legislation still needs approval in the Senate, where its prospects are uncertain, and then support from the president.
E15—gasoline made with 15% corn-based ethanol—could provide a meaningful boost to farm profits at a time when growers are dealing with record crops and rising costs of inputs such as fertilizer.
"At a time of extreme market volatility and higher costs, this bill provides badly needed certainty for fuel retailers, oil refiners, ethanol producers, and consumers alike," Renewable Fuels Association President Geoff Cooper said.
Potentially relevant stocks include Archer Daniels Midland (ADM [https://seekingalpha.com/symbol/ADM]), Bunge (BG [https://seekingalpha.com/symbol/BG]), Green Plains (GPRE [https://seekingalpha.com/symbol/GPRE]), Gevo (GEVO [https://seekingalpha.com/symbol/GEVO]), Clean Energy Fuels (CLNE [https://seekingalpha.com/symbol/CLNE]), REX American Resources (REX [https://seekingalpha.com/symbol/REX]), Darling Ingredients (DAR [https://seekingalpha.com/symbol/DAR]), FutureFuel (FF [https://seekingalpha.com/symbol/FF]), Valero Energy (VLO [https://seekingalpha.com/symbol/VLO]), Marathon Petroleum (MPC [https://seekingalpha.com/symbol/MPC]), Phillips 66 (PSX [https://seekingalpha.com/symbol/PSX]), HF Sinclair (DINO [https://seekingalpha.com/symbol/DINO]), PBF Energy (PBF [https://seekingalpha.com/symbol/PBF]), Delek US (DK [https://seekingalpha.com/symbol/DK]).
ETFs: (CORN [https://seekingalpha.com/symbol/CORN]), (SOYB [https://seekingalpha.com/symbol/SOYB]), (WEAT [https://seekingalpha.com/symbol/WEAT]), (DBA [https://seekingalpha.com/symbol/DBA]), (MOO [https://seekingalpha.com/symbol/MOO])
MORE ON ARCHER DANIELS MIDLAND, VALERO ENERGY, AND GREEN PLAINS
* Archer Daniels Midland: Why My Cautious Outlook In 2021 Was Correct [https://seekingalpha.com/article/4902969-archer-daniels-midland-why-my-cautious-outlook-in-2021-was-correct]
* Valero Energy: A Repeat Of The Mega-Cycle From 2022 [https://seekingalpha.com/article/4897915-valero-energy-stock-repeat-of-the-mega-cycle-from-2022]
* Green Plains: Time To Harvest The Greenbacks [https://seekingalpha.com/article/4882330-green-plains-time-to-harvest-the-greenbacks]
- HF Sinclair terminates CFO Atanasov, a day after CEO Go departs
May 14, 2026
[Aerial View of a Texas Oil Refinery and Fuel Storage Tanks]
Art Wager/E+ via Getty Images
HF Sinclair (DINO [https://seekingalpha.com/symbol/DINO]) said post-market Wednesday it has terminated [https://seekingalpha.com/filing/302207102] Executive VP and CFO Atanas Atanasov, who has been on leave of absence since late February following concerns raised by its audit committee.
The move comes a day after the company disclosed CEO Timothy Go departed [https://seekingalpha.com/filing/298449708] the company under a separation deal after being on voluntary leave for nearly three months.
HF Sinclair (DINO [https://seekingalpha.com/symbol/DINO]) said in January it had launched an internal review of its disclosure processes after Atanasov raised concerns about Go's actions; separate concerns arose about Atanasov's behavior, and the CFO began a leave of absence [https://seekingalpha.com/news/4558716-hf-sinclair-cfo-atanasov-takes-voluntary-leave-of-absence-a-week-after-ceo-departure] a few weeks later.
The company said Chief Accounting Officer Vivek Garg will continue to serve as acting CFO, a role he has held since February, while board Chair Franklin Myers has been serving as interim CEO.
MORE ON HF SINCLAIR
* HF Sinclair Q1 2026 Earnings Call Transcript [https://seekingalpha.com/article/4897430-hf-sinclair-corporation-dino-q1-2026-earnings-call-transcript]
* Buy HF Sinclair On Bumper Profits [https://seekingalpha.com/article/4890275-buy-hf-sinclair-on-bumper-profits]
* HF Sinclair: Management Turmoil Creates An Overhang [https://seekingalpha.com/article/4871671-hf-sinclair-management-turmoil-creates-an-overhang]
- HF Sinclair terminates CFO Atanas Atanasov
May 13, 2026 · reuters.com
U.S. refiner HF Sinclair's CFO Atanas Atanasov, who has been on voluntary leave of absence since late February amid concerns raised by its audit committee, has been terminated, the company said on Wednesday.
- Sinclair Oil CEO leaves company
May 12, 2026
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter.
Dive Brief:
HF Sinclair and its President and CEO Timothy Go have reached a separation agreement nearly three months after the chief executive took a leave of absence, according to a Tuesday filing with the Securities and Exchange Commission. Go officially left Sinclair on May 11, according to the SEC filing. He also resigned from Sinclair’s board of directors and agreed that any position or role he had as an agent, officer or director of the company, its predecessors, subsidiaries or affiliates has ended. Sinclair’s Chairperson Franklin Myers became interim president and CEO when Go went on leave in February. A spokesperson from Sinclair did not respond by press time to comment and share if Myers has become the company’s permanent president and CEO.
Dive Insight:
Go stepped away from Sinclair — one of the top fuel distributors in convenience retailing — in late February after Executive Vice President and CFO Atanas Atanasov told the company’s board of directors that certain actions by Go “created an unfavorable ‘tone at the top’ in relation to Sinclair’s 2025 disclosure processes.” After an internal review with the support of outside legal counsel, the board developed separate concerns regarding Go’s communication approach during this period.
At the time, Sinclair did not specify what Go did to raise such concerns. By late March, Sinclair said it expected to permanently part ways with both Go and Atanasov, who also took a leave of absence in February. However, the company did not provide a timeline for their departures.
As of May 11, Go is officially out, while Sinclair has yet to reach a separation agreement with Atanasov, according to Tuesday’s SEC filing. sinclair
In the filing, the company emphasized that Go’s departure is “not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.” As part of the May 11 separation agreement, Go will receive a payout of over $4.7 million.
“It has been a great privilege to lead HF Sinclair as COO and later to be promoted to CEO over the past 6 years,” Go said in a statement to C-Store Dive. “I am proud of the record on safety as well as operational and financial successes during my tenure. I am grateful for the opportunity to have led this phase of growth as I now transition into my next chapter.”
Before being named president and CEO in May 2023, Go was Sinclair’s chief operating officer for about three years, according to his company bio. Before Sinclair, he was CEO of Sinclair’s general partner Calumet Specialty Products Partners, an independent producer of specialty hydrocarbon products, for four years.
Go’s absence may complicate Sinclair’s next steps as the company charts significant growth under temporary leadership. Shortly after he stepped away in February, Sinclair launched a joint venture with c-store holding company UPOP Holdings that includes 30 new convenience retail sites across Colorado and New Mexico. As part of the joint venture, dubbed Green Trail Fuels, Sinclair will supply fuel from its regional refineries to all 30 c-stores while UPOP operates the sites. Sinclair will hold a 50% non-operating economic interest in the venture.
Story Continues
Editor’s note: This story has been updated with a statement from Tim Go.
Recommended Reading
Sinclair Oil likely to part ways with CEO, CFO
View Comments
- Earnings Rebound, Buyback and Dividend Moves Might Change The Case For Investing In HF Sinclair (DINO)
May 8, 2026
In the first quarter of 2026, HF Sinclair reported sales of US$7,123 million, net income of US$648 million, earnings per share of US$3.56, completed a US$616.56 million buyback totaling 6.62% of its shares, and the board declared a regular US$0.50 per-share dividend payable on June 2, 2026. This combination of a sharp earnings turnaround, solid cash returns through dividends and buybacks, and stronger renewable diesel performance has sharpened investor focus on how HF Sinclair balances traditional refining with lower-carbon growth. We will now examine how this earnings rebound, particularly the renewed profitability in refining and renewable diesel, affects HF Sinclair’s investment narrative.
The future of work is here. Discover the 32 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation.
HF Sinclair Investment Narrative Recap
To own HF Sinclair, you need to believe it can keep earning strong returns from traditional refining while steadily building a meaningful renewable diesel business. The Q1 2026 rebound in earnings and cash generation strengthens the near term catalyst of robust refining profitability, while the biggest ongoing risk remains how fast long term demand for gasoline and diesel might soften as transport technologies evolve. This quarter’s news does not materially change that core tension, but it makes it more visible.
The most relevant update here is HF Sinclair’s completion of a US$616.56 million buyback, retiring 6.62% of its shares under the May 2024 program. Combined with the regular US$0.50 quarterly dividend, these capital returns sit squarely at the heart of the bull case catalyst: that solid free cash flow from refining and renewables can support ongoing buybacks and dividends, even as the energy mix slowly shifts over time.
Yet in contrast, investors should also be aware that the biggest risk remains how quickly long term fuel demand could change...
Read the full narrative on HF Sinclair (it's free!)
HF Sinclair's narrative projects $28.1 billion revenue and $956.2 million earnings by 2028. This requires 1.6% yearly revenue growth and about a $1.04 billion earnings increase from $-86.0 million today.
Uncover how HF Sinclair's forecasts yield a $58.93 fair value, a 16% downside to its current price.
Exploring Other PerspectivesDINO 1-Year Stock Price Chart
Some of the lowest estimate analysts were far more cautious, assuming roughly flat revenue near US$26.3 billion and earnings of about US$737 million by 2029, so Q1’s stronger results may eventually push those more pessimistic views to adjust, and you should recognize how widely opinions can differ before deciding which narrative fits your own expectations.
Story Continues
Explore 5 other fair value estimates on HF Sinclair - why the stock might be worth as much as 35% more than the current price!
Form Your Own Verdict
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
A great starting point for your HF Sinclair research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free HF Sinclair research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HF Sinclair's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include DINO.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Is HF Sinclair (DINO) Stock Undervalued Right Now?
May 7, 2026
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is HF Sinclair (DINO). DINO is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is DINO's P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.96. Over the past year, DINO's P/B has been as high as 1.06 and as low as 0.53, with a median of 0.76.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DINO has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.52.
These are just a handful of the figures considered in HF Sinclair's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DINO is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HF Sinclair Corporation (DINO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- Is HF Sinclair (DINO) Stock Undervalued Right Now?
May 7, 2026 · zacks.com
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
- Zacks Industry Outlook Highlights Valero Energy, Phillips 66 and HF Sinclair
May 7, 2026
For Immediate Release
Chicago, IL – May 7, 2026 – Today, Zacks Equity Research discusses Valero Energy VLO, Phillips 66 PSX and HF Sinclair DINO.
Industry: Oil & Gas - Refining & Marketing
Link: https://www.zacks.com/commentary/2915576/looking-for-energy-winners-try-3-refining-marketing-stocks
The Zacks Oil and Gas - Refining & Marketing industry looks well placed for continued strength. U.S. refiners are benefiting from reliable access to domestic and Canadian crude supplies, which gives them an edge when global oil flows face disruptions. Product inventories also remain tight, especially for diesel, gasoline and jet fuel, while demand from travel, freight, agriculture and exports stays firm. That mix can support pricing power and refining margins.
The industry’s outlook is further backed by a strong Zacks Rank, improving earnings estimates and solid one-year performance versus the broader energy sector and the S&P 500. Valuation also remains reasonable, with the group trading below both the sector and market on EV/EBITDA. In this favorable setting, flexible refiners with strong operations and shareholder-friendly strategies stand out. Valero Energy, Phillips 66 and HF Sinclair look especially attractive, making them excellent investment options.
Industry Overview
The Zacks Oil and Gas - Refining & Marketing industry consists of companies involved in selling refined petroleum products (including heating oil, gasoline, jet fuel, residual oil, etc.) and a plethora of non-energy materials (like asphalt, road salt, clay and gypsum). Some companies operate refined product terminals, storage facilities and transportation services. The primary activity of these firms involves purchasing crude or other feedstocks and processing them into a wide variety of refined products.
Refining margins are extremely volatile and generally reflect the state of petroleum product inventories, demand for refined products, imports, regional differences and capacity utilization in the industry. Other major determinants of refining profitability are the light/heavy and sweet/sour spreads. Refining companies are also prone to unplanned outages.
3 Trends Defining the Oil and Gas - Refining & Marketing Industry's Future
Reliable U.S. Supply is Becoming a Bigger Advantage: Refiners with access to secure North American crude supplies are in a better position when global oil flows are disrupted. While some overseas refineries may struggle with crude availability or shipping delays, many U.S. refiners can keep running because they are linked to domestic and Canadian supply networks. This matters because steady operations help the industry meet demand for gasoline, diesel and jet fuel when global markets are tight. In simple terms, a reliable supply can turn market stress into an opportunity for stronger margins.
Story Continues
Low Product Inventories Can Support Refining Margins: Demand for transportation fuels remains fairly resilient, even with higher prices. At the same time, inventories of products like diesel, gasoline and jet fuel are tight in several markets. This creates a favorable setup for refiners because buyers still need fuel, but supply is not easy to rebuild quickly. Jet fuel and distillates appear especially strong, helped by travel, freight, agriculture and export demand. When inventories are low and replacement supply is limited, refiners usually have better pricing power. That can support industry earnings through the current cycle.
Flexibility is Becoming More Valuable Than Size Alone: The best-positioned refiners are not just running large plants. They are also adjusting what they produce based on market needs. When jet fuel is short, they can shift more output toward jet. When gasoline demand improves, they can raise gasoline yields. When heavy crude is discounted, complex refineries can process more of it and capture better economics. This flexibility helps the industry respond quickly to changing crude prices, product shortages and regional imbalances. In a volatile market, the ability to change the product mix can protect margins and improve cash generation.
Zacks Industry Rank Indicates Positive Outlook
The Zacks Oil and Gas - Refining & Marketing is a 16-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #7, which places it in the top 3% of 245 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of improving earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up 65.7% in the past year.
Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Outperforms Sector & S&P 500
The Zacks Oil and Gas - Refining & Marketing industry has fared better than the broader Zacks Oil - Energy Sector as well as the Zacks S&P 500 composite over the past year.
The industry has gone up 72.3% over this period compared with the broader sector’s increase of 50.7%. Meanwhile, the S&P 500 has gained 33.2%.
Industry's Current Valuation
Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of noncash expenses.
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA), the industry is currently trading at 6.40X, significantly lower than the S&P 500’s 17.61X. It is also below the sector’s trailing 12-month EV/EBITDA of 7.19X.
Over the past five years, the industry has traded as high as 6.42X and as low as 1.77X, with a median of 3.61X.
3 Stocks to Buy
Valero Energy: Valero Energy is a major independent energy company focused on liquid transportation fuels. It operates 14 refineries with about 3 million barrels per day of high-complexity throughput capacity, supported by logistics and wholesale networks across key markets. The Zacks Rank #1 (Strong Buy) company also runs 12 ethanol plants with 1.7 billion gallons of annual capacity.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Beyond refining, Valero is growing in low-carbon fuels through Diamond Green Diesel, which produces renewable diesel and sustainable aviation fuel from recycled feedstocks such as used cooking oil and animal fats. Its strategy centers on disciplined spending, reliable operations, cost control and steady shareholder returns.
The Zacks Consensus Estimate for 2026 earnings of VLO indicates 126.3% growth. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 28%. The company’s shares have increased 116.7% in a year.
Phillips 66: Phillips 66 is an integrated energy company with operations spanning midstream, chemicals, refining, marketing, specialties and renewable fuels. Its asset base connects supply from the wellhead to end consumers, supported by reliable feedstocks, strong operations and access to premium markets across more than 80 countries.
This #1 Ranked company trades large volumes of crude, clean products, NGLs, renewable feedstocks and natural gas, helped by a broad commercial network and global shipping reach. In first-quarter 2026, PSX reported earnings of $207 million and returned $778 million to its shareholders, while staying focused on disciplined spending, debt reduction and steady dividends.
Phillips 66’s expected EPS growth rate for three to five years is currently 38.6%, which compares favorably with the industry's growth rate of 26.4%. The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 67.8%. Shares of the company have gained 70.8% in a year.
HF Sinclair: HF Sinclair is a Dallas-based energy company operating across refining, marketing, midstream, lubricants and renewables. It runs seven refineries with 678,000 barrels per day of capacity across the Mid-Continent, West and Pacific Northwest regions. The Zacks Rank #1 company also owns a broad pipeline, storage and terminal network that supports fuel movement across key U.S. markets.
Its well-known Sinclair brand reaches over 1,700 branded retail sites, while its lubricants business sells products in more than 80 countries. HF Sinclair is also building scale in renewable diesel, with about 380 million gallons of annual capacity, supporting cleaner fuel demand and long-term growth.
HF Sinclair has a market capitalization of nearly $13 billion. DINO beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 203.6%. The Zacks Consensus Estimate for HF Sinclair’s 2026 earnings per share indicates 40.5% year-over-year growth. Shares of DINO have gained 127.8% in a year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
HF Sinclair Corporation (DINO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- TD Cowen Raises HF Sinclair (DINO) Price Target after Strong Renewable Diesel Performance
May 6, 2026
With YTD returns of 51.7% as of May 5, HF Sinclair Corporation (NYSE:DINO) is included among the 10 Best Performing Dividend Stocks So Far in 2026.TD Cowen Raises HF Sinclair (DINO) Price Target after Strong Renewable Diesel Performance
On May 4, TD Cowen raised its price target on HF Sinclair Corporation (NYSE:DINO) to $80 from $68 while maintaining a Hold rating on the shares. The firm updated its model after the company’s Q1 results, where renewable diesel performance came in ahead of expectations. Cowen said it is maintaining its segment forecast, though it sees a potential upside scenario that could add $90 million in annual EBITDA. The firm also noted that seasonal trends should support inland refining dynamics in the near term.
On the same day, Barclays analyst Theresa Chen raised the firm’s price target on HF Sinclair to $71 from $61 and kept an Equal Weight rating on the stock following the Q1 report. Chen said the company’s refining operations remain well-positioned to benefit from ongoing supply tightness. Still, the analyst added that demand “will be the main swing factor from here,” according to a research note sent to investors.
HF Sinclair Corporation (NYSE:DINO) is an energy company that produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, and other specialty products. Its business segments include Refining, Renewables, Marketing, Lubricants & Specialties, and Midstream.
While we acknowledge the potential of DINO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Blue Chip Stocks to Invest In According to Billionairesand 10 Best BDC Stocks to Buy Right Now.
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- Looking for Energy Winners? Try 3 Refining & Marketing Stocks
May 6, 2026
The Zacks Oil and Gas - Refining & Marketing industry looks well placed for continued strength. U.S. refiners are benefiting from reliable access to domestic and Canadian crude supplies, which gives them an edge when global oil flows face disruptions. Product inventories also remain tight, especially for diesel, gasoline and jet fuel, while demand from travel, freight, agriculture and exports stays firm. That mix can support pricing power and refining margins. The industry’s outlook is further backed by a strong Zacks Rank, improving earnings estimates and solid one-year performance versus the broader energy sector and the S&P 500. Valuation also remains reasonable, with the group trading below both the sector and market on EV/EBITDA. In this favorable setting, flexible refiners with strong operations and shareholder-friendly strategies stand out. Valero Energy VLO, Phillips 66 PSX and HF Sinclair DINO look especially attractive, making them excellent investment options.
Industry Overview
The Zacks Oil and Gas - Refining & Marketing industry consists of companies involved in selling refined petroleum products (including heating oil, gasoline, jet fuel, residual oil, etc.) and a plethora of non-energy materials (like asphalt, road salt, clay and gypsum). Some companies operate refined product terminals, storage facilities and transportation services. The primary activity of these firms involves purchasing crude or other feedstocks and processing them into a wide variety of refined products. Refining margins are extremely volatile and generally reflect the state of petroleum product inventories, demand for refined products, imports, regional differences and capacity utilization in the industry. Other major determinants of refining profitability are the light/heavy and sweet/sour spreads. Refining companies are also prone to unplanned outages.
3 Trends Defining the Oil and Gas - Refining & Marketing Industry's Future
Reliable U.S. Supply is Becoming a Bigger Advantage: Refiners with access to secure North American crude supplies are in a better position when global oil flows are disrupted. While some overseas refineries may struggle with crude availability or shipping delays, many U.S. refiners can keep running because they are linked to domestic and Canadian supply networks. This matters because steady operations help the industry meet demand for gasoline, diesel and jet fuel when global markets are tight. In simple terms, a reliable supply can turn market stress into an opportunity for stronger margins.
Low Product Inventories Can Support Refining Margins: Demand for transportation fuels remains fairly resilient, even with higher prices. At the same time, inventories of products like diesel, gasoline and jet fuel are tight in several markets. This creates a favorable setup for refiners because buyers still need fuel, but supply is not easy to rebuild quickly. Jet fuel and distillates appear especially strong, helped by travel, freight, agriculture and export demand. When inventories are low and replacement supply is limited, refiners usually have better pricing power. That can support industry earnings through the current cycle.
Flexibility is Becoming More Valuable Than Size Alone: The best-positioned refiners are not just running large plants. They are also adjusting what they produce based on market needs. When jet fuel is short, they can shift more output toward jet. When gasoline demand improves, they can raise gasoline yields. When heavy crude is discounted, complex refineries can process more of it and capture better economics. This flexibility helps the industry respond quickly to changing crude prices, product shortages and regional imbalances. In a volatile market, the ability to change the product mix can protect margins and improve cash generation.
Story Continues
Zacks Industry Rank Indicates Positive Outlook
The Zacks Oil and Gas - Refining & Marketing is a 16-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #7, which places it in the top 3% of 245 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of improving earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up 65.7% in the past year.
Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Outperforms Sector & S&P 500
The Zacks Oil and Gas - Refining & Marketing industry has fared better than the broader Zacks Oil - Energy Sector as well as the Zacks S&P 500 composite over the past year.
The industry has gone up 72.3% over this period compared with the broader sector’s increase of 50.7%. Meanwhile, the S&P 500 has gained 33.2%.
One-Year Price Performance
Industry's Current Valuation
Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of noncash expenses.
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA), the industry is currently trading at 6.40X, significantly lower than the S&P 500’s 17.61X. It is also below the sector’s trailing 12-month EV/EBITDA of 7.19X.
Over the past five years, the industry has traded as high as 6.42X and as low as 1.77X, with a median of 3.61X, as the chart below shows.
Trailing 12-Month Enterprise Value-to-EBITDA (EV/EBITDA) Ratio (Past Five Years)
3 Stocks to Buy
Valero Energy: Valero Energy is a major independent energy company focused on liquid transportation fuels. It operates 14 refineries with about 3 million barrels per day of high-complexity throughput capacity, supported by logistics and wholesale networks across key markets. The Zacks Rank #1 (Strong Buy) company also runs 12 ethanol plants with 1.7 billion gallons of annual capacity.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Beyond refining, Valero is growing in low-carbon fuels through Diamond Green Diesel, which produces renewable diesel and sustainable aviation fuel from recycled feedstocks such as used cooking oil and animal fats. Its strategy centers on disciplined spending, reliable operations, cost control and steady shareholder returns.
The Zacks Consensus Estimate for 2026 earnings of VLO indicates 126.3% growth. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 28%. The company’s shares have increased 116.7% in a year.
Price and Consensus: VLO
Phillips 66: Phillips 66 is an integrated energy company with operations spanning midstream, chemicals, refining, marketing, specialties and renewable fuels. Its asset base connects supply from the wellhead to end consumers, supported by reliable feedstocks, strong operations and access to premium markets across more than 80 countries.
This #1 Ranked company trades large volumes of crude, clean products, NGLs, renewable feedstocks and natural gas, helped by a broad commercial network and global shipping reach. In first-quarter 2026, PSX reported earnings of $207 million and returned $778 million to its shareholders, while staying focused on disciplined spending, debt reduction and steady dividends.
Phillips 66’s expected EPS growth rate for three to five years is currently 38.6%, which compares favorably with the industry's growth rate of 26.4%. The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 67.8%. Shares of the company have gained 70.8% in a year.
Price and Consensus: PSX
HF Sinclair: HF Sinclair is a Dallas-based energy company operating across refining, marketing, midstream, lubricants and renewables. It runs seven refineries with 678,000 barrels per day of capacity across the Mid-Continent, West and Pacific Northwest regions. The Zacks Rank #1 company also owns a broad pipeline, storage and terminal network that supports fuel movement across key U.S. markets.
Its well-known Sinclair brand reaches over 1,700 branded retail sites, while its lubricants business sells products in more than 80 countries. HF Sinclair is also building scale in renewable diesel, with about 380 million gallons of annual capacity, supporting cleaner fuel demand and long-term growth.
HF Sinclair has a market capitalization of nearly $13 billion. DINO beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 203.6%. The Zacks Consensus Estimate for HF Sinclair’s 2026 earnings per share indicates 40.5% year-over-year growth. Shares of DINO have gained 127.8% in a year.
Price and Consensus: DINO
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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