- Is It Too Late To Consider Valero Energy (VLO) After A 100% One Year Rally?
May 9, 2026
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If you are wondering whether Valero Energy at around US$236 per share is still good value or if most of the upside has already been priced in, this article breaks down what the current valuation implies for you. The stock has seen a 6.4% decline over the last week and a 6.0% decline over the last month, yet year to date it shows a 43.0% return and over the past year it has returned 99.9%. Recent headlines around the refining and energy sector, including shifting expectations for fuel demand and refining margins, help frame these sharp moves in Valero Energy's share price. Broader discussion around energy infrastructure and commodity price sensitivity also contributes to how investors are reassessing risk and potential reward here. Valero Energy currently has a value score of 3 out of 6, and the next sections will compare that score across common valuation tools before finishing with a broader way to think about what valuation means for this stock.
Valero Energy delivered 99.9% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry.
Approach 1: Valero Energy Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model takes the cash Valero Energy is expected to generate in the future and discounts those amounts back to what they are worth in today’s dollars. It is a way of asking what the business as a whole might be worth based on its cash flows rather than its share price.
Valero Energy has last twelve months free cash flow of about $5.5b. The current model uses a 2 Stage Free Cash Flow to Equity approach, with analyst inputs for the earlier years and then extrapolated figures thereafter. For example, projected free cash flow for 2026 is $9.2b, stepping down to $4.8b by 2030, with that 2030 figure explicitly guided by analysts or model estimates. All projections are in $ and then discounted to reflect their present value.
On this basis, the DCF model points to an estimated intrinsic value of about $346.94 per share, which sits above the current share price of around $236. That gap translates into an implied 31.9% discount, suggesting the stock screens as undervalued using this method.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Valero Energy is undervalued by 31.9%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.VLO Discounted Cash Flow as at May 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Valero Energy.
Story Continues
Approach 2: Valero Energy Price vs Earnings
For companies that are generating profits, the P/E ratio is a straightforward way to see how much you are paying for each dollar of earnings. It ties directly to what the business is earning today, which many investors find easier to relate to than long term cash flow models.
What counts as a “normal” or “fair” P/E depends on how fast earnings are expected to change and how risky those earnings appear. Higher expected growth or lower perceived risk can justify a higher multiple, while lower growth or higher risk usually lines up with a lower one.
Valero Energy currently trades on a P/E of 16.73x. That sits above both the Oil and Gas industry average P/E of 14.20x and the peer average of 14.58x. Simply Wall St’s Fair Ratio for Valero Energy is 20.54x, which is its proprietary estimate of what the P/E could be given factors such as earnings growth, profit margins, industry, market cap and company specific risks. This Fair Ratio can be more informative than a simple comparison with peers or the industry average because it adjusts for these business characteristics. Since the Fair Ratio is higher than the current P/E, this approach points to the stock screening as undervalued.
Result: UNDERVALUEDNYSE:VLO P/E Ratio as at May 2026
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Upgrade Your Decision Making: Choose your Valero Energy Narrative
Earlier the article mentioned that there is an even better way to understand valuation, so this is where Narratives come in as a simple way for you to attach a clear story about Valero Energy to concrete numbers like expected revenue, earnings, margins and a fair value estimate, then compare that fair value with the current share price to help you decide whether you see the stock as attractive, stretched or somewhere in between.
On Simply Wall St, Narratives live in the Community page and are easy to use, because they guide you to set your own assumptions and link them directly to a forecast and fair value that automatically refreshes when new information such as news or earnings is added, so your view does not stay frozen in time.
For Valero Energy, one investor might build a more optimistic Narrative that lines up with a fair value around US$265.11 per share and assumes profit margins of about 6.0%, while another might take a more cautious Narrative closer to US$170.00 per share with margins around 2.5%. By comparing each Narrative’s fair value to the current price you can decide which story fits your expectations and risk tolerance best.
For Valero Energy, however, we will make it really easy for you with previews of two leading Valero Energy Narratives:
🐂 Valero Energy Bull Case
Narrative fair value: US$247.33 per share
Implied discount to this fair value: 4.5% based on the current share price of about US$236.35
Revenue growth assumption: 2.0% decline
Analysts see earnings rising even while revenue is expected to stay roughly flat, mainly through higher profit margins and buybacks reducing the share count. The story leans on refinery optimization projects, available liquidity, and capital discipline to support earnings per share and shareholder returns. Key risks are asset impairments, cost pressures, regulatory changes, and renewable segment profitability, which could all challenge the path to the analysts’ fair value range.
🐻 Valero Energy Bear Case
Narrative fair value: US$185.51 per share
Implied premium to this fair value: 27.4% based on the current share price of about US$236.35
Revenue growth assumption: 9.0%
This view frames Valero alongside other large energy stocks and argues that even with healthy cash flows and dividends, the current price already incorporates a lot of optimism. The author focuses on income, free cash flow, and payout ratios, but still sees the upside from today’s price as limited relative to their own target. Downside protection is a clear theme, with emphasis on where stop losses would sit if earnings or valuation assumptions do not hold up.
Whichever Narrative feels closer to how you see Valero Energy’s earnings power, margins, and risk profile, the key is to stress test those assumptions against your own expectations for refining economics, regulation, and how much you are willing to pay for that future cash flow.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Valero Energy on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
Do you think there's more to the story for Valero Energy? Head over to our Community to see what others are saying!NYSE:VLO 1-Year Stock Price Chart
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 VLO.
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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- Best Low-Beta Stocks to Own Right Away: LQDA, CBOE, VLO & FANG
May 8, 2026
Escalating tensions in the Middle East will likely continue to make the U.S. stock market volatile. Thus, fears will likely dominate market sentiment, increasing the appeal of low-beta stocks that tend to move less aggressively than the broader market. Stocks that may attract investors' attention are Liquidia Corporation LQDA. Cboe Global Markets, Inc. CBOE, Valero Energy Corporation VLO and Diamondback Energy, Inc. FANG.
What Does Beta of a Stock Measure?
Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
Screening Criteria Using Research Wizard:
We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.
Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.
Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.
Zacks Rank Equal to 1 (Strong Buy):Zacks Rank #1 stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are four of the 22 stocks that qualified for the screening:
Liquidia
Liquidia is experiencing rapid growth in YUTREPIA adoption, with increasing patient referrals, expanding prescriber base and rising market share. The company has achieved profitability and is generating positive cash flow, supported by a strong cash position. It is also pursuing expansion into additional indications and larger market opportunities through ongoing and planned clinical development.
Story Continues
Cboe Global Markets
Among the business areas where Cboe Global is growing, options trading remains active. As trading activity surges, CBOE collects more fees, which is fueling profits. The company is financially strong with low debt while consistently rewarding shareholders, thereby giving investors added confidence.
Valero Energy
Valero Energy is among the world's leading low-cost fuel producers, with a combined throughput capacity of 3 million barrels per day. In addition to its presence in traditional refining, the company has exposure to lower-carbon fuels, comprising sustainable aviation fuel, renewable diesel and ethanol.
Diamondback Energy
Diamondback is a pure-play Permian producer and thus benefits from the ongoing high crude pricing environment. Apart from having an investment-grade balance sheet, the company has a promising production outlook, thanks to the huge inventory of drilling locations. Diamondback also expects its well costs in the prolific Midland basin to continue declining, aiding its bottom line.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
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- Zacks.com featured highlights include Dow, Valero Energy, Ultrapar Participacoes and Nexa Resources
May 8, 2026
For Immediate Release
Chicago, IL – May 8, 2026 – Stocks in this week’s article are Dow DOW, Valero Energy VLO, Ultrapar Participacoes UGP and Nexa Resources NEXA.
4 PEG-Driven GARP Stocks Offering High Growth Potential for 2026
In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability.
The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers.
Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid, sustainable growth potential (Investopedia).
Several stocks that have surged significantly in recent years have demonstrated the overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These are Dow, Valero Energy, Ultrapar Participacoes and Nexa Resources.
A Few More Words on GARP
GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
It relates the stocks’ P/E ratios to the future earnings growth rates.
While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.
A lower PEG ratio, preferably less than 1, is always better for GARP investors.
Say, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.
Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock.
There are some drawbacks to using the PEG ratio, though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Story Continues
Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration.
Here are four stocks that qualified the screening:
Dow: It is a material science company, providing a world-class portfolio of advanced, sustainable and leading-edge products. The “Transform to Outperform” program will boost productivity and deliver meaningful EBITDA benefits. Investment in high-return projects should also be accretive to Dow’s earnings.
DOW can be an impressive GARP investment pick with its Zacks Rank #1, a Value Score of B and a Growth Score of B. Apart from a discounted PEG and P/E, the stock has an impressive long-term expected growth rate of 56%.
Valero: San Antonio, TX-based Valero stands out among independent refiners with 15 refineries across the United States, Canada and the Caribbean, totaling 3.2 million barrels per day (MMBPD) of capacity. The company’s diversified and strategically located refinery network differentiates it from peers, allowing access to multiple markets and supporting strong refining margins, aided by the ability to process cost-effective crude.
VLO has a Zacks Rank #1, a Value Score of B and a Growth Style Score of B. Valero also has an impressive five-year historical growth rate of 41.5%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Ultrapar Participacoes: It operates across energy, mobility and logistics infrastructure sectors through Ultragaz, Ipiranga, Ultracargo and Hidrovias. The company distributes fuels, biofuels, lubricants and natural gas, operates Ipiranga service stations and AmPm convenience stores and sells additive fuels under the Ipimax brand across Brazil and international markets.
UGP stock can be an impressive GARP investment pick with its Zacks Rank #2, a Value Score of A and a Growth Score of A. Apart from a discounted PEG and P/E, Ultrapar Participacoes has an impressive long-term historical growth rate of 14.5%.
Nexa: The company is a global zinc mining and smelting company operating through the Mining and Smelting segments. It produces zinc, gold, sulfuric acid and zinc oxide, along with silver, copper and lead by-products. Nexa operates polymetallic mines in Peru and Brazil, plus zinc smelters in both countries.
NEXA can also be an impressive GARP investment pick with its Zacks Rank #2, a Value Score of A and a Growth Score of A. Apart from a discounted PEG and P/E, the stock also has a solid long-term historical growth rate of 49%.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
Dow Inc. (DOW) : Free Stock Analysis Report
Ultrapar Participacoes S.A. (UGP) : Free Stock Analysis Report
Nexa Resources S.A. (NEXA) : Free Stock Analysis Report
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- Valero Energy Corporation Declares Regular Cash Dividend on Common Stock
May 7, 2026
SAN ANTONIO, May 07, 2026--(BUSINESS WIRE)--The Board of Directors of Valero Energy Corporation (NYSE: VLO, "Valero") has declared a regular quarterly cash dividend of $1.20 per share on its common stock. The dividend will be payable on June 23, 2026, to stockholders of record as of the close of business on May 21, 2026.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. Valero operates 14 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.0 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260507599511/en/
Contacts
Valero Contacts
Investors:
Brian Donovan, Vice President – Investor Relations, 210-345-1682
Eric Herbort, Director – Investor Relations and Finance, 210-345-3331
Gautam Srivastava, Director – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
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- 4 PEG-Driven GARP Stocks Offering High Growth Potential for 2026
May 7, 2026
In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability.
The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers.
Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid, sustainable growth potential (Investopedia).
Several stocks that have surged significantly in recent years have demonstrated the overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These are Dow DOW, Valero Energy VLO, Ultrapar Participacoes UGP and Nexa Resources NEXA.
A Few More Words on GARP
GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
It relates the stocks’ P/E ratios to the future earnings growth rates.
While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.
A lower PEG ratio, preferably less than 1, is always better for GARP investors.
Say, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.
Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock.
There are some drawbacks to using the PEG ratio, though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration.
Here are the screening criteria for a winning strategy:
Story Continues
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (For more accurate valuation purpose)
Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.)
Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)
Average 20-Day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness.
Value Score of less than or equal to B: Our research shows that stocks with a Value Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential.
Growth Score of less than or equal to B: Our research shows that stocks with a Growth Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3, offer the best upside potential.
Our PEG-Driven Picks
Here are four stocks that qualified the screening:
Dow: It is a material science company, providing a world-class portfolio of advanced, sustainable and leading-edge products. The “Transform to Outperform” program will boost productivity and deliver meaningful EBITDA benefits. Investment in high-return projects should also be accretive to Dow’s earnings.
DOW can be an impressive GARP investment pick with its Zacks Rank #1, a Value Score of B and a Growth Score of B. Apart from a discounted PEG and P/E, the stock has an impressive long-term expected growth rate of 56%.
Valero: San Antonio, TX-based Valero stands out among independent refiners with 15 refineries across the United States, Canada and the Caribbean, totaling 3.2 million barrels per day (MMBPD) of capacity. The company’s diversified and strategically located refinery network differentiates it from peers, allowing access to multiple markets and supporting strong refining margins, aided by the ability to process cost-effective crude.
VLO has a Zacks Rank #1, a Value Score of B and a Growth Style Score of B. Valero also has an impressive five-year historical growth rate of 41.5%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Ultrapar Participacoes: It operates across energy, mobility and logistics infrastructure sectors through Ultragaz, Ipiranga, Ultracargo and Hidrovias. The company distributes fuels, biofuels, lubricants and natural gas, operates Ipiranga service stations and AmPm convenience stores and sells additive fuels under the Ipimax brand across Brazil and international markets.
UGP stock can be an impressive GARP investment pick with its Zacks Rank #2, a Value Score of A and a Growth Score of A. Apart from a discounted PEG and P/E, Ultrapar Participacoes has an impressive long-term historical growth rate of 14.5%.
Nexa: The company is a global zinc mining and smelting company operating through the Mining and Smelting segments. It produces zinc, gold, sulfuric acid and zinc oxide, along with silver, copper and lead by-products. Nexa operates polymetallic mines in Peru and Brazil, plus zinc smelters in both countries.
NEXA can also be an impressive GARP investment pick with its Zacks Rank #2, a Value Score of A and a Growth Score of A. Apart from a discounted PEG and P/E, the stock also has a solid long-term historical growth rate of 49%.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
Dow Inc. (DOW) : Free Stock Analysis Report
Ultrapar Participacoes S.A. (UGP) : Free Stock Analysis Report
Nexa Resources S.A. (NEXA) : Free Stock Analysis Report
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- Morgan Stanley Raises its Price Target on Valero Energy (VLO) to $232
May 7, 2026
Valero Energy Corporation (NYSE:VLO) is one of the
10 All-Time High But Still Undervalued Stocks to Invest In.
On May 1, 2026, Morgan Stanley analyst Joe Laetsch raised the price target on Valero Energy Corporation (NYSE:VLO) to $232 from $222 and maintained an Equal Weight rating. Joe Laetsch said Q1 results came in ahead of expectations, supported by stronger refining throughput and margins, while Renewable Diesel improved on higher throughput and lower operating expenses, and Ethanol benefited from stronger margins and cost controls.
On April 30, 2026, Valero Energy Corporation (NYSE:VLO) reported Q1 adjusted EPS of $4.22 versus $3.16 consensus and revenue of $32.38B compared to $29.87B expected. CEO Lane Riggs said the company delivered an “excellent first quarter,” citing strong execution across operations, commercial activity, and financial management during a volatile commodity market environment.Morgan Stanley Raises its Price Target on Valero Energy (VLO) to $232
Copyright: sifotography / 123RF Stock Photo
Prior to the earnings release, Scotiabank analyst Betty Zhang raised the price target on Valero Energy Corporation (NYSE:VLO) to $226 from $178 and maintained an Outperform rating as part of a broader sector update.
Valero Energy Corporation (NYSE:VLO) manufactures and markets petroleum-based and low-carbon transportation fuels and petrochemical products globally.
While we acknowledge the potential of VLO 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: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
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- Best Growth Stocks to Buy for May 7th
May 7, 2026
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today May 7th:
Centene CNC: This well-diversified healthcare company, that primarily provides a set of services to the government sponsored healthcare programs, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.5% over the last 60 days.
Centene Corporation Price and ConsensusCentene Corporation Price and Consensus
Centene Corporation price-consensus-chart | Centene Corporation Quote
Centene has a PEG ratio of 1.03 compared with 1.47 for the industry. The company possesses a Growth Score of A.
Centene Corporation PEG Ratio (TTM)Centene Corporation PEG Ratio (TTM)
Centene Corporation peg-ratio-ttm | Centene Corporation Quote
Petco Health and Wellness Co. WOOF: This company, which is a fully-integrated health and wellness company for pets, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 35.7% over the last 60 days.
Petco Health and Wellness Company, Inc. Price and ConsensusPetco Health and Wellness Company, Inc. Price and Consensus
Petco Health and Wellness Company, Inc. price-consensus-chart | Petco Health and Wellness Company, Inc. Quote
Petco Health and Wellness has a PEG ratio of 1.30 compared with 2.46 for the industry. The company possesses a Growth Score of A.
Petco Health and Wellness Company, Inc. PEG Ratio (TTM)Petco Health and Wellness Company, Inc. PEG Ratio (TTM)
Petco Health and Wellness Company, Inc. peg-ratio-ttm | Petco Health and Wellness Company, Inc. Quote
Valero Energy VLO: This company, which is the largest independent refiner and marketer of petroleum products in the United States, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 95.7% over the last 60 days.
Valero Energy Corporation Price and ConsensusValero Energy Corporation Price and Consensus
Valero Energy Corporation price-consensus-chart | Valero Energy Corporation Quote
Valero Energy has a PEG ratio of 0.39 compared with 0.50 for the industry. The company possesses a Growth Score of B.
Valero Energy Corporation PEG Ratio (TTM)Valero Energy Corporation PEG Ratio (TTM)
Valero Energy Corporation peg-ratio-ttm | Valero Energy Corporation Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
Centene Corporation (CNC) : Free Stock Analysis Report
Petco Health and Wellness Company, Inc. (WOOF) : Free Stock Analysis Report
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- 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).
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- Valero Energy Corporation (VLO) is Attracting Investor Attention: Here is What You Should Know
May 6, 2026
Valero Energy (VLO) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this oil refiner have returned +0.8% over the past month versus the Zacks S&P 500 composite's +9.5% change. The Zacks Oil and Gas - Refining and Marketing industry, to which Valero Energy belongs, has gained 2.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Valero Energy is expected to post earnings of $6.69 per share, indicating a change of +193.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +45.6% over the last 30 days.
The consensus earnings estimate of $25.71 for the current fiscal year indicates a year-over-year change of +142.3%. This estimate has changed +65% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $20.52 indicates a change of -20.2% from what Valero Energy is expected to report a year ago. Over the past month, the estimate has changed +35.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Valero Energy.
Story Continues
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS12-month consensus EPS estimate for VLO
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Valero Energy, the consensus sales estimate of $35.73 billion for the current quarter points to a year-over-year change of +19.5%. The $132.36 billion and $128.99 billion estimates for the current and next fiscal years indicate changes of +7.9% and -2.5%, respectively.
Last Reported Results and Surprise History
Valero Energy reported revenues of $32.38 billion in the last reported quarter, representing a year-over-year change of +7%. EPS of $4.22 for the same period compares with $0.89 a year ago.
Compared to the Zacks Consensus Estimate of $30.88 billion, the reported revenues represent a surprise of +4.86%. The EPS surprise was +37.46%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Valero Energy is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Valero Energy. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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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
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
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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