California Public Employees Retirement System lessened its position in Murphy USA Inc. (NYSE:MUSA – Free Report) by 15.8% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 41,347 shares of the specialty retailer’s stock after selling 7,766 shares during the period. California Public Employees Retirement System owned about 0.22% of Murphy USA worth $20,424,000 as of its most recent filing with the SEC.
Several other large investors have also made changes to their positions in the company. MassMutual Private Wealth & Trust FSB boosted its position in Murphy USA by 82.4% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 62 shares of the specialty retailer’s stock valued at $25,000 after buying an additional 28 shares in the last quarter. Huntington National Bank increased its holdings in shares of Murphy USA by 106.7% during the fourth quarter. Huntington National Bank now owns 62 shares of the specialty retailer’s stock worth $25,000 after buying an additional 32 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of Murphy USA by 423.1% in the second quarter. EverSource Wealth Advisors LLC now owns 68 shares of the specialty retailer’s stock valued at $28,000 after acquiring an additional 55 shares during the last quarter. V Square Quantitative Management LLC bought a new position in shares of Murphy USA in the fourth quarter valued at approximately $29,000. Finally, WPG Advisers LLC boosted its holdings in shares of Murphy USA by 148.5% in the 4th quarter. WPG Advisers LLC now owns 82 shares of the specialty retailer’s stock worth $33,000 after acquiring an additional 49 shares in the last quarter. Institutional investors own 80.81% of the company’s stock.
Insider Buying and Selling In other news, SVP Keith A. Emery sold 517 shares of Murphy USA stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $574.49, for a total transaction of $297,011.33. Following the completion of the sale, the senior vice president owned 500 shares in the company, valued at $287,245. The trade was a 50.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Diane N. Landen sold 3,000 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $547.25, for a total transaction of $1,641,750.00. Following the sale, the director directly owned 53,841 shares of the company’s stock, valued at approximately $29,464,487.25. This trade represents a 5.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 46,225 shares of company stock worth $27,363,392. 9.02% of the stock is currently owned by company insiders.
Murphy USA Trading Up 1.2% MUSA stock opened at $618.22 on Thursday. The company has a market cap of $11.42 billion, a P/E ratio of 21.37, a PEG ratio of 1.97 and a beta of 0.30. Murphy USA Inc. has a twelve month low of $345.23 and a twelve month high of $636.04. The company has a quick ratio of 0.48, a current ratio of 0.83 and a debt-to-equity ratio of 3.24. The business has a fifty day moving average of $564.57 and a 200-day moving average of $496.66.
Murphy USA (NYSE:MUSA – Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The specialty retailer reported $7.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.37 by $1.91. The business had revenue of $4.82 billion for the quarter, compared to analysts’ expectations of $4.70 billion. Murphy USA had a return on equity of 91.05% and a net margin of 2.81%.The firm’s quarterly revenue was up 6.5% compared to the same quarter last year. During the same quarter last year, the business earned $2.63 earnings per share. As a group, equities research analysts expect that Murphy USA Inc. will post 32.58 EPS for the current year.
Murphy USA Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 18th were paid a $0.64 dividend. This is a boost from Murphy USA’s previous quarterly dividend of $0.63. The ex-dividend date of this dividend was Monday, May 18th. This represents a $2.56 annualized dividend and a dividend yield of 0.4%. Murphy USA’s payout ratio is 8.85%.
Analyst Upgrades and Downgrades A number of research firms recently weighed in on MUSA. KeyCorp raised their price target on Murphy USA from $600.00 to $680.00 and gave the company an “overweight” rating in a report on Friday, June 12th. Weiss Ratings upgraded Murphy USA from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, June 30th. JPMorgan Chase & Co. began coverage on Murphy USA in a research note on Thursday, March 26th. They issued an “overweight” rating and a $539.00 target price for the company. Bank of America upped their price target on shares of Murphy USA from $600.00 to $625.00 and gave the stock a “neutral” rating in a research report on Friday, July 10th. Finally, Zacks Research lowered shares of Murphy USA from a “strong-buy” rating to a “hold” rating in a report on Monday, June 22nd. Six equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $585.11.
View Our Latest Report on MUSA
Murphy USA Company Profile (Free Report)
Murphy USA is a leading downstream marketer of gasoline, diesel and convenience store products in the United States. Headquartered in El Dorado, Arkansas, the company was originally established as part of Murphy Oil Corporation and was spun off as an independent public entity in 2013. Since its separation, Murphy USA has focused on retail fueling services and convenience offerings designed to deliver value and convenience to consumers.
The company’s primary operations center on two retail formats.
See Also Five stocks we like better than Murphy USA Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding MUSA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Murphy USA Inc. (NYSE:MUSA – Free Report).
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Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
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Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Murphy USA (MUSA - Free Report) Murphy USA Inc. is a leading independent retailer of motor fuel and convenience merchandise in the United States. The El Dorado, AR-based company, in its current form, came into existence following the 2013 spin-off of Murphy Oil Corporation’s downstream business into a separate, independent and publicly-traded entity.
MUSA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. MUSA has a Momentum Style Score of A, and shares are up 7.3% over the past four weeks.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.41 to $32.58 per share. MUSA boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MUSA should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Murphy USA (MUSA - Free Report) Murphy USA Inc. is a leading independent retailer of motor fuel and convenience merchandise in the United States. The El Dorado, AR-based company, in its current form, came into existence following the 2013 spin-off of Murphy Oil Corporation’s downstream business into a separate, independent and publicly-traded entity.
MUSA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.75; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.41 to $32.58 per share. MUSA boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, MUSA should be on investors' short list.
EL DORADO, Ark.--(BUSINESS WIRE)--Murphy USA Inc. (NYSE: MUSA) will announce second quarter 2026 financial results along with management commentary after the market closes on Wednesday, August 5, 2026, followed by a question-and-answer session at 10:00 a.m. CT on Thursday, August 6, 2026. The earnings release information and management commentary will be available on the Investor Relations section of the Murphy USA website at http://ir.corporate.murphyusa.com.
The live Q&A webcast will begin at 10:00 a.m. CT on Thursday, August 6, 2026, and can be accessed through the same section of the website. For those unable to join via webcast, the conference call can be accessed by dialing (833) 461-5787 and entering conference ID number 407414209.
A replay of the webcast will be available approximately one hour after the live session concludes, and a transcript will be posted shortly thereafter.
About Murphy USA
Murphy USA (NYSE: MUSA) is a leading retailer of gasoline and convenience merchandise with more than 1,800 stores located primarily in the Southwest, Southeast, Midwest and Northeast United States. The Company and its team of approximately 16,900 employees serve an estimated two million customers each day through its network of retail gasoline and convenience stores in 27 states. The majority of Murphy USA's stores are located in close proximity to Walmart Supercenters, but we also operate standalone stores that market gasoline and other products under the Murphy USA, Murphy Express, and QuickChek brands. Murphy USA ranks 263 among Fortune 500 companies.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Murphy USA (MUSA - Free Report) Murphy USA Inc. is a leading independent retailer of motor fuel and convenience merchandise in the United States. The El Dorado, AR-based company, in its current form, came into existence following the 2013 spin-off of Murphy Oil Corporation’s downstream business into a separate, independent and publicly-traded entity.
MUSA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.22; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $3.82 to $32.30 per share. MUSA also boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, MUSA should be on investors' short list.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Murphy USA (MUSA - Free Report) Murphy USA Inc. is a leading independent retailer of motor fuel and convenience merchandise in the United States. The El Dorado, AR-based company, in its current form, came into existence following the 2013 spin-off of Murphy Oil Corporation’s downstream business into a separate, independent and publicly-traded entity.
MUSA is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. MUSA has a Momentum Style Score of B, and shares are up 1.6% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $6.78 to $32.30 per share. MUSA boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MUSA should be on investors' short list.
Key Takeaways MUSA's same-store nicotine contribution climbed 11.5%, outpacing non-nicotine growth.Murphy USA benefited from higher merchandise margins and resilient nicotine demand.MUSA's valuation and rising EPS estimates support its long-term outlook. Murphy USA's (MUSA - Free Report) merchandise business is increasingly being driven by one category, nicotine. While discretionary consumer spending remains under pressure, the company's nicotine offerings continue to generate strong sales and higher-margin profits, helping offset weakness in other in-store categories. Recent results indicate that nicotine has evolved beyond a traffic driver into one of Murphy USA's most significant earnings contributors.
During the first quarter, MUSA reported merchandise contribution of $210.2 million, up 7.3% year over year. On a same-store basis, merchandise contribution increased 4.9%, supported by both higher sales and expanding unit margins, which improved to 20.0% from 19.6% in the prior-year quarter. Nicotine remained the standout performer, with same-store contribution rising 11.5%, far exceeding the 2.7% growth recorded in non-nicotine merchandise. Management noted that nearly every merchandise metric benefited from nicotine's continued strength, while discretionary categories such as snacks and other non-essential products remained soft as consumers carefully managed household budgets.
Murphy USA's value-focused operating model has further reinforced this trend. Management highlighted that elevated fuel prices have attracted more value-conscious customers to its stores, creating additional opportunities for nicotine purchases. Unlike discretionary merchandise, nicotine products typically experience more stable demand regardless of broader economic conditions. As a result, the category continues to provide MUSA with a dependable source of inside-store profitability even as the retail environment remains cautious.
MUSA Stands Out Among PeersMUSA is not the only convenience retailer benefiting from nicotine demand, but the category appears to be contributing more meaningfully to the recent merchandise growth than it does for several competitors.
Casey's General Stores (CASY - Free Report) has expanded its assortment of cigarettes, modern oral nicotine products and other tobacco offerings. However, Casey's still relies heavily on prepared food and beverages as its primary engine for inside-store sales growth. While nicotine remains an important category, the company's long-term strategy is centered on foodservice expansion, resulting in a more diversified merchandise mix.
ARKO Corp. (ARKO - Free Report) also generates a portion of its in-store sales from tobacco and nicotine products. Similar to MUSA, ARKO serves value-oriented consumers and views tobacco as an important traffic driver. At the same time, the company has been investing in foodservice, loyalty programs and private-label products to reduce its dependence on traditional tobacco categories. Compared with ARKO, MUSA's latest results suggest nicotine remains a more immediate catalyst for merchandise margin expansion, supported by robust demand for modern nicotine products and its everyday low-price strategy.
Although Casey's and ARKO both recognize nicotine as an important merchandise category, MUSA currently appears to be extracting greater earnings leverage from the segment, helping offset softer discretionary spending while supporting stronger merchandise contribution growth.
Valuation and Earnings Outlook Remain FavorableMUSA's long-term outlook remains supported by resilient nicotine demand, continued retail expansion and disciplined execution. While non-nicotine discretionary categories could recover as consumer spending improves, nicotine currently provides the company with a stable source of higher-margin merchandise contribution and strengthens earnings resilience.
The stock also appears attractively valued relative to its growth prospects. MUSA trades at a forward price-to-earnings ratio of 17.84, well below Casey's 39.59 and ARKO's 22.11.
Image Source: Zacks Investment ResearchAnalysts have also become increasingly optimistic about the company's earnings trajectory, raising 2026 EPS estimates by 26.57% and 2027 estimates by 7.35% over the past 60 days.
Image Source: Zacks Investment Research
From a stock performance perspective, MUSA has delivered solid returns but has trailed some peers. Over the past six months, ARKO’s shares have surged 60.9%, outperforming Casey's and MUSA, which gained 46.7% and 35.5%, respectively.
Image Source: Zacks Investment Research
Murphy USA's combination of attractive valuation, strong earnings momentum and nicotine-driven merchandise growth supports its favorable long-term outlook. MUSA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Murphy USA posted Q1 2026 net income of $136.3M as fuel contribution rose to 35 cents per gallon.Casey's Q3 2026 inside gross profit rose 8.9%, supported by prepared food and beverage demand.MUSA trades at 18.9 forward P/E versus 41.8 for CASY, with a stronger EPS estimate revisions. Murphy USA (MUSA - Free Report) and Casey’s General Stores (CASY - Free Report) are two of the most successful convenience store operators in the United States, but they follow very different strategies. Murphy USA is built around a high-volume, low-cost fuel retail model targeting value-conscious customers, while Casey’s focuses on a food-forward convenience model driven by prepared meals and a growing loyalty ecosystem.
Both companies have delivered strong recent results. For investors in the convenience retail sector, the key question is which stock offers the better opportunity today.
The Case for Murphy USAMurphy USA has differentiated itself through an everyday low-price fuel strategy. The company operates more than 1,800 locations across 27 states and serves nearly 2 million customers daily, making fuel traffic the core driver of its business model.
First-quarter 2026 results underscored the strength of this approach. Net income rose to $136.3 million, or $7.28 per diluted share, compared with $53.2 million, or $2.63, in the prior-year quarter. Adjusted EBITDA increased to $277.9 million from $157.4 million.
A key driver was stronger fuel profitability. Total fuel contribution reached 35 cents per gallon compared with 25.4 cents a year earlier, lifting fuel contribution to $403.9 million from $287.3 million. This improvement reflected favorable supply dynamics and stronger market conditions.
The merchandise segment also showed steady improvement. Merchandise contribution increased 7.3% year over year to $210.2 million, supported by higher unit margins and continued growth in nicotine-related products.
Capital allocation remains another strength. Murphy USA repurchased about 169,000 shares for $70.9 million during the quarter while continuing dividend payments. Ongoing buybacks have consistently supported earnings per share growth.
Looking ahead, management plans to open 45 to 55 new stores in 2026, with 18 already under construction in early 2026. This controlled expansion should support volume growth while maintaining operating efficiency.
The Case for Casey’sCasey’s operates a different model, where inside-store sales — particularly prepared food — play a larger role in profitability than fuel alone.
Fiscal third-quarter 2026 results highlighted this strength. Net income rose 49.3% year over year to $130.1 million, while earnings per share increased 66.2% to $4.37. EBITDA grew 27.5% to $308.9 million.
Inside sales remain the primary growth engine. Inside gross profit increased 8.9% to $624 million, while same-store inside sales rose 4%. Prepared food and beverage sales grew 4.3%, led by strong demand for pizzas and hot sandwiches.
Margins are a key advantage. Casey’s inside margin reached 42.2%, with prepared food and beverage margins at 58.3%, significantly higher than typical fuel retail margins. This mix helps create a more stable and diversified earnings base.
Fuel performance was also solid, with same-store gallons up 0.4% and fuel margin at 41 cents per gallon. Total fuel gross profit rose 15.3% year over year.
The company is also strengthening customer engagement. Casey’s Rewards program has surpassed 10 million members, improving retention and enabling more targeted promotions.
Scale supports the model as well, with roughly 2,900 stores across 19 states and about 800 million annual guest transactions.
Valuation and Growth OutlookThe two companies offer different investment profiles. Murphy USA is more leveraged to fuel margins and volume trends, while Casey’s benefits from a more balanced mix of fuel and high-margin food sales.
Image Source: Zacks Investment Research
MUSA trades at a forward 12-month P/E of 18.9X, compared with Casey’s at 41.8X, making the former significantly cheaper on earnings multiples.
From a growth perspective, Casey’s benefits from the continued expansion of its food business and loyalty ecosystem, which supports steady same-store sales growth. However, Murphy USA shows stronger near-term earnings momentum, driven by fuel profitability and operating leverage, assuming stable fuel conditions.
Price Performance
Image Source: Zacks Investment Research
Over the past three months, Murphy USA’s shares gained 24.2%, slightly trailing Casey’s, which advanced 25.1%. This indicates that Casey’s modestly outperformed Murphy USA during the period.
EPS Estimate RevisionsAnalysts have turned more positive on Murphy USA over the past 60 days. Fiscal 2026 consensus estimates increased 26.65%, with 2027 estimates up 8.16%.
Image Source: Zacks Investment Research
In contrast, Casey's saw more modest revisions, with fiscal 2027 estimates up 4.09% and fiscal 2028 estimates up 6.43%, reflecting a steadier but less pronounced improvement in earnings expectations.
Image Source: Zacks Investment Research
Which Stock Is the Better Buy Now?Both companies are well-run operators with strong execution and expanding footprints. Casey’s stands out for its differentiated food platform, strong loyalty program and diversified profit mix, which together create a durable long-term retail franchise.
However, Murphy USA appears more attractive in the near term. It is delivering stronger earnings growth, benefiting from favorable fuel contribution trends, improving merchandise margins and active share repurchases. It also carries a stronger analyst momentum profile and a lower valuation multiple. Notably, both Murphy USA and Casey's currently carry a Zacks Rank #1 (Strong Buy), reflecting favorable earnings outlooks. However, Murphy USA's stronger estimate revisions, lower valuation and superior near-term earnings momentum make it the more compelling buy for investors seeking a combination of value and growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are two stocks with buy rank and strong value characteristics for investors to consider today, June 18:
Murphy USA Inc. MUSA: This retail fuel marketing company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 26.7% over the last 60 days.
Murphy has a price-to-earnings ratio (P/E) of 17.64 compared with 29.50 for the industry. The company possesses a Value Scoreof B.
Paycom Software, Inc. PAYC: This cloud-based human capital management company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 2.8% over the last 60 days.
Paycom Software has a price-to-earnings ratio (P/E) of 12.11 compared with 190.60 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
TWFG, Inc. (TWFG - Free Report) : This insurance company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.7% over the last 60 days.
XPO, Inc. (XPO - Free Report) : This freight transportation services company has seen the Zacks Consensus Estimate for its current year earnings increasing 8% over the last 60 days.
Murphy USA Inc. (MUSA - Free Report) : This retail fuel marketing company has seen the Zacks Consensus Estimate for its current year earnings increasing 26.7% over the last 60 days.
Flywire Corporation (FLYW - Free Report) : This payment enablement and software company has seen the Zacks Consensus Estimate for its current year earnings increasing 236.7% over the last 60 days
Kiniksa Pharmaceuticals International, plc (KNSA - Free Report) : This biopharmaceutical company has seen the Zacks Consensus Estimate for its current year earnings increasing 13.8% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks hitting their 52-week high and delivering consistent performances offer attractive opportunities to investors while building a portfolio. This is because stocks near that level are perceived to be winners. However, stocks touching a new 52-week high are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
Investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as Murphy USA (MUSA - Free Report) , DaVita (DVA - Free Report) , Hewlett Packard (HPE - Free Report) and Vishay Intertechnology (VSH - Free Report) are expected to maintain their momentum and keep scaling new highs. Extensive information on a stock is necessary to understand whether or not there is scope for upside.
Here, we discuss a strategy to find the right stocks. The strategy borrows from the basics of momentum investing. This technique bets on “buy high, sell higher.”
We ran a screen to zero in on 52-week high stocks (trading near the high level) that hold tremendous upside potential. The screen includes parameters to shortlist stocks with strong earnings growth expectations, sturdy value metrics and price momentum.
Moreover, the screen filters stocks that are relatively undervalued compared to their peers in terms of earnings as well as sales, ensuring the continuation of their rally for some time.
Current Price/52 Week High >= .11: This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.11 implies that the stock is trading within 20% of its 52-week high range.
% Change Price – 4 Weeks > 0: It ensures that the stock price has moved north over the past four weeks.
% Change Price – 12 Weeks > 0: This metric guarantees a continued upward price momentum for the stock over the past three months as well.
Price/Sales <= XIndMed: The lower, the better.
P/E using F(1) Estimate <= XIndMed: This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to the industry.
1-Year EPS Growth F(1)/F(0) >= XIndMed: This helps choose stocks that have higher growth rates than the industry. This is a meaningful indicator, as decent earnings growth adds to investor optimism.
Zacks Rank <=2: No screening is complete without the Zacks Rank, which has proved its worth since its inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) have always managed to brave adversities and beat the market average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price >= 8: This parameter will help screen stocks that are trading at $8 or higher.
Volume – 20 days (shares) >= 100000: The inclusion of this metric ensures that there is a substantial volume of shares, so trading is easier.
Here are our four picks out of the 22 stocks, each carrying a Zacks Rank #1, that made it through the screen:
Murphy USA's recent company disclosures point to a fuel-and-convenience retailer gaining steady momentum. April's first-quarter results showed fuel contribution strengthening to 35 cents per gallon and merchandise contribution dollars rising 7.3%. Management reaffirmed plans to open 45 to 55 new stores in 2026, with six already in service and 18 more under construction. In May, the board lifted the quarterly dividend to 64 cents per share, a 28% increase from a year earlier, and the company priced $500 million of senior notes carrying investment-grade ratings to refinance outstanding 2027 debt, extending maturities to 2034. That increased dividend was paid to shareholders on June 1, underscoring a disciplined, shareholder-friendly capital framework alongside continued investment in store growth and ongoing reinvestment programs.
The Zacks Consensus Estimate for the company’s 2026 earnings has moved 26.6% north to $32.32 per share in the past 60 days. MUSA surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.56%.
DaVita is set to enter the second half of 2026 on an encouraging footing. Management raised full-year guidance, lifting expected adjusted operating income to $2.15–$2.25 billion and adjusted EPS to $14.1–$15.2, alongside a $1–$1.25 billion free cash flow target. First-quarter revenues reached $3.42 billion, with U.S. dialysis treatment volumes and per-treatment reimbursement both improving year over year. The company served roughly 296,300 patients across 3,262 centers worldwide as of March 31, 2026, reflecting steady international expansion. Capital discipline remains a tailwind: DaVita repurchased 3 million shares in the first quarter, followed by another 2.0 million shares through early May, signaling continued confidence from leadership. With raised guidance, disciplined execution, and ongoing investment in integrated kidney care, DaVita looks well-positioned for steady near-term progress.
The Zacks Consensus Estimate for the company’s 2026 earnings has moved 6.4% north to $15.07 per share in the past 60 days. DVA’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 2.4%.
Hewlett Packard is gaining fundamental ground across its key business segments. Its April announcement expanded the ProLiant edge portfolio for AI and mission-critical workloads, broadening addressable use cases. By May, the company completed its H3C divestiture, receiving roughly $1.36 billion in proceeds and strengthening balance-sheet flexibility. Its second-quarter results in June showed record revenues, expanding margins and free cash flow well ahead of plan, prompting management to raise full-year revenues, EPS, and free-cash-flow guidance, alongside a new fiscal 2027 growth framework. Networking revenues surged on Juniper integration, while Cloud & AI margins improved meaningfully. With a steady dividend, disciplined cost execution and AI-networking momentum highlighted at Discover 2026, HPE's fundamentals point to a constructive near-term trajectory.
The Zacks Consensus Estimate for the company’s fiscal 2026 earnings has moved 41.5% north to $3.41 per share in the past 60 days. HPE surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 15.97%.
Vishay Intertechnology enters the back half of 2026 with genuine operational momentum. First-quarter revenues reached $839.2 million with gross margin expanding to 21.0%. A 1.34 book-to-bill ratio—1.47 for semiconductors—signals demand outpacing shipments. Management guided second-quarter revenues to $875–905 million with gross margin near 22%, implying continued sequential improvement as the "Vishay 3.0" capacity investments mature. Its board reaffirmed a 10-cent quarterly dividend, which underscores balance-sheet discipline. Product momentum remains robust. April through June brought new FRED Pt rectifiers, automotive-grade optocouplers, high-current inductors, and a 200 A power module targeting EVs, solar inverters, and aerospace applications, which broadened Vishay's addressable end-markets. With a backlog of 5.7 months and rising lead-time competitiveness, its fundamentals point toward a constructive near-term setup.
The Zacks Consensus Estimate for the company’s 2026 earnings has increased by 47.1% to 75 cents per share in the past 60 days. VSH’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters, while missing the same twice, the average negative surprise being 108.33%.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Murphy USA plans to open 45-55 new stores in 2026, with 18 locations already under construction.MUSA posted Q1 EPS of $7.28 as fuel contribution rose 40.6% and margins expanded year over year.Murphy USA saw 2026 EPS estimates rise to $31.48 as fuel economics and merchandise sales improved. Murphy USA's (MUSA - Free Report) shares have surged 36.2% over the past three months, significantly outperforming the Oil-Energy sector, which declined just 0.4% during the same period. The strong rally reflects growing investor confidence in the company's disciplined execution and long-term growth strategy.
Share Price Trend in the Past Three Months
Image Source: Zacks Investment Research
The convenience retailer is reinforcing that growth story by accelerating store expansion, a key pillar of its value-creation strategy. Following strong first-quarter 2026 results, Murphy USA reaffirmed plans to open 45-55 new stores this year, highlighting management's confidence in site economics, consumer demand and its ability to generate attractive returns on invested capital.
The expansion update comes at a time when Murphy USA is benefiting from favorable fuel margins, rising merchandise contribution and improving earnings expectations. With analysts becoming increasingly optimistic about the company’s EPS outlook, investors may be wondering whether MUSA remains an attractive stock despite its recent gains.
Store Expansion Continues to Fuel Long-Term Growth Murphy USA’s investment appeal rests on a straightforward but effective strategy: expanding its store footprint while leveraging the low-cost operating model to drive higher fuel volumes and merchandise sales.
The company currently operates more than 1,800 stores across 27 states and serves nearly two million customers daily. Unlike many convenience-store operators that rely heavily on acquisitions, MUSA has largely pursued organic growth, allowing management to maintain operational consistency and focus on locations capable of generating strong returns.
Management's expectation of new stores opening in 2026 has been supported by 18 locations already under construction. As the network expands, the company benefits from greater operating leverage, increased customer traffic and higher revenue opportunities. The ability to consistently generate attractive returns from new-store investments remains one of Murphy USA’s most important competitive strengths.
Strong Q1 Results Reflect Business MomentumMUSA’s first-quarter results highlighted the resilience of its value-oriented business model.
Earnings surged to $7.28 per share from $2.63 in the year-ago period, driven by stronger fuel margins, favorable fuel supply economics and growing merchandise contribution.
Image Source: Murphy USA Inc.
Total fuel contribution increased 40.6% year over year to $403.9 million, while fuel contribution margins expanded to 35 cents per gallon from 25.4 cents a year earlier.
Image Source: Murphy USA Inc.
Fuel remains the company’s primary earnings engine, but merchandise sales are becoming an increasingly important contributor. During the quarter, merchandise contribution rose 7.3% year over year to $210.2 million, supported by strong nicotine sales, higher customer traffic and improved margins.
This trend is particularly encouraging because merchandise products generally carry higher margins than fuel. As MUSA continues to develop larger-format stores and expand food-and-beverage offerings, merchandise sales should play a bigger role in supporting earnings growth and reducing dependence on fuel-margin fluctuations.
Value Positioning Supports Market-Share GainsMUSA’s everyday-low-price strategy continues to resonate with consumers in a challenging economic environment.
Persistent inflation and elevated living costs have increased demand for value-focused retailers, and Murphy USA appears well positioned to capitalize on this trend. Its ability to offer competitively priced fuel and convenience-store merchandise has helped maintain strong traffic levels across its network.
The company’s low-cost operating structure also allows it to respond effectively to periods of fuel-price volatility. Historically, these market disruptions have often created opportunities for Murphy USA to gain market share, reinforcing its position as a leading value-focused convenience retailer.
Is MUSA a Better Investment Than Its Peers?Murphy USA competes with major convenience-store operators such as Casey's General Stores (CASY - Free Report) and Arko Corp. (ARKO - Free Report) .
Casey's General Stores has successfully expanded through acquisitions, new-store development and growth in prepared-food offerings. However, MUSA’s fuel-focused operating model continues to drive higher fuel volumes and strong customer traffic.
Meanwhile, Arko has focused on expanding its retail footprint and improving store productivity. While those initiatives support growth, MUSA benefits from greater scale, a more established operating platform and a longer track record of generating attractive returns through organic expansion.
Compared with Casey’s GeneralStores and Arko, MUSA’s scale advantages and operational efficiency provide greater earnings stability and support long-term shareholder value creation.
Earnings Estimates and Valuation Remain SupportiveOne of the most encouraging developments for investors is the improvement in MUSA’s earnings outlook.
Image Source: Zacks Investment Research
Over the past 60 days, analysts have significantly increased their earnings expectations. The consensus estimate for 2026 earnings has climbed from $25.52 per share to $32.32, while the 2027 estimate has increased from $27.33 to $29.56.
These upward revisions reflect growing confidence that favorable fuel economics, rising merchandise contribution and ongoing store expansion will continue to support earnings growth.
The handsome gains reflect investor confidence in the company’s execution and long-term strategy. Despite the rally, valuation remains reasonable.
Image Source: Zacks Investment Research
MUSA's forward price-to-earnings (P/E) ratio of 20.01 reflects an attractive valuation, particularly in light of its strong earnings momentum, expanding retail network and improving profitability. The stock also trades at a notable discount to peers, with Casey's General Stores and Arko carrying forward P/E multiples of 44.47 and 25.82, respectively.
Should Investors Buy MUSA Stock?Murphy USA's decision to accelerate store expansion reinforces confidence in its long-term growth trajectory. The company is benefiting from strong fuel economics, growing merchandise contribution, disciplined capital allocation and a proven ability to generate attractive returns from new-store investments. While fuel market volatility and consumer spending trends remain factors to monitor, MUSA's value-oriented business model continues to perform well across different economic environments. Combined with a Zacks Rank #1 (Strong Buy), favorable earnings momentum and a growing store base, the stock appears well positioned for further upside.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA (MUSA - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Murphy USA basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Murphy USA imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Murphy USAThis gasoline station operator is expected to earn $32.32 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Murphy USA. Over the past three months, the Zacks Consensus Estimate for the company has increased 29.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Murphy USA to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Murphy USA (MUSA - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this gasoline station operator is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Murphy USA is 13.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 23.1% this year, crushing the industry average, which calls for EPS growth of 11.5%.
Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.
Right now, Murphy USA has an S/TA ratio of 4.17, which means that the company gets $4.17 in sales for each dollar in assets. Comparing this to the industry average of 3.09, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Murphy USA is well positioned from a sales growth perspective too. The company's sales are expected to grow 10% this year versus the industry average of 5%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Murphy USA have been revising upward. The Zacks Consensus Estimate for the current year has surged 16.3% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Murphy USA a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Murphy USA is a potential outperformer and a solid choice for growth investors.
Key Takeaways Micron Technology is gaining from AI-driven memory demand and rising HBM adoption in data centers.Seagate Technology sees AI-led storage demand driving growth as Mozaic HAMR products expand cloud adoption.Five Below is boosting traffic through digital marketing and value-focused merchandise momentum. U.S. stock markets closed at record highs in April supported by a solid first-quarter 2026 earnings season, continuation of artificial intelligence (AI) trade and expectations for a near-term solution to the Middle East geopolitical conflicts.
The broad market S&P 500 Index and the tech-heavy Nasdaq Composite surged 10.4% and 15.3%, respectively, in April, recording their best monthly performance since 2020. Both indexes posted several closing and intra-day highs last month. The Dow advanced 7.1% last month, marking its strongest monthly performance since November 2024.
At this stage, we have identified five large-cap growth stocks that investors should purchase to strengthen their portfolios in May. Growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel prices higher in the future.
Five such stocks are: Micron Technology Inc. (MU - Free Report) , Ciena Corp. (CIEN - Free Report) , Seagate Technology Holdings plc (STX - Free Report) , Five Below Inc. (FIVE - Free Report) and Murphy USA Inc. (MUSA - Free Report) . Each of our picks sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Micron Technology Inc.Micron Technology is benefiting from the rapidly expanding AI-driven memory and storage markets. The positive impacts of inventory improvement across multiple end markets are driving top-line growth.
MU has become a leader in the AI infrastructure boom due to strong demand for its high-bandwidth memory (HBM) solutions. Record sales in the data center end market and accelerating HBM adoption have been driving MU’s Dynamic Access Random Memory (DRAM) revenues higher.
The growing adoption of AI servers is reshaping the DRAM market as these systems require significantly more memory than traditional servers. This is boosting demand for both high-capacity DIMMs (Dual In-line Memory Module) and low-power server DRAM.
MU is capitalizing on this trend with its leadership in DRAM technology and a strong product roadmap that includes HBM4, slated for volume production in 2026. MU’s investments in next-generation DRAM and 3D NAND ensure that it remains competitive in delivering the performance needed for modern computing.
Micron Technology has an expected revenue and earnings growth rate of more than 100% each, respectively, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.02% over the last 30 days.
Ciena Corp.Ciena has been benefiting from accelerating AI-led demand from cloud and service provider customers. Powered by strong cloud and service provider momentum, CIEN has gained 2 points of optical market share year to date and expects further gains in 2026.
CIEN continues to capitalize on WAN connectivity needs across subsea, long-haul, metro networks and DCI. Better pricing, Hyper-Rail innovation and cost optimization are expected to boost gross margins, ahead. For fiscal 2026, adjusted gross margin is projected at 43.5-44.5%.
With the first half exceeding expectations and supply challenges being managed, CIEN now expects first- and second-half gross margins to be roughly similar. It is managing supply conditions effectively and expanding capacity, but demand is expected to exceed supply for the next several quarters. For the second quarter, CIEN expects revenues of $1.5 billion (+/-$50 million).
Ciena has an expected revenue and earnings growth rate of 27.9% and more than 100%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last seven days.
Seagate Technology Holdings plcSeagate Technology has been benefiting from AI-led storage demand, a robust technology roadmap anchored in Mozaic and HAMR and disciplined execution focused on converting demand into profitable growth and long-term value creation. Cloud drives most data center revenues, with STX’s Mozaic shipments reaching 75% of top cloud customers, and full qualification expected in the ongoing quarter.
STX highlighted that the company is entering a “new era of structural growth” driven by strong AI-led demand, rising adoption of Mozaic products and disciplined execution focused on expanding margins, cash flow and long-term value.
HDDs remain significantly more cost-effective for bulk storage—especially critical in hyperscale data centers supporting AI infrastructure. Seagate is well-positioned to capture this expanding opportunity through a technology strategy focused on increasing areal density rather than unit volumes, enabling a more capital- and manufacturing-efficient path to scale while improving cost and power efficiency per terabyte.
This supports STX’s target of mid-20% exabyte growth. Its Mozaic 4+ platform, a second-generation HAMR product, delivers up to 44TB per drive — more than 30% higher capacity than earlier versions — achieved with minimal changes to materials, while integrating advanced laser and photonics technology for precision manufacturing at scale. Following initial shipments in March, Mozaic 4 is expected to dominate HAMR exabyte shipments by the end of 2026.
STX’s strategic business transformation and robust product pipeline position it for long-term success. In the March quarter, data center revenue accounted for 80% of total revenues, at $2.5 billion, representing a 12% sequential increase and 55% year-over-year growth. The uptick is driven by continued strong demand from global cloud customers and sequential improvement across enterprise OEM markets.
Seagate Technology has an expected revenue and earnings growth rate of 30.6% and 83.8%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 11.6% in the last seven days.
Five Below Inc.Five Below is demonstrating clear momentum, underpinned by strong holiday performance and accelerating demand for its trend-right, value-driven assortment. FIVE’s focus on merchandising relevance, customer engagement, and experiential retail is translating into broad-based strength.
The brand continues to resonate with its core teen and pre-teen customers while expanding appeal to a wider value-conscious customer, reinforcing traffic and basket growth. FIVE’s pivotal shift in marketing spend toward digital and social media channels has successfully accelerated store traffic.
Five Below has an expected revenue and earnings growth rate of 11.3% and 19.2%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 14.6% over the last 60 days.
Murphy USA Inc.Murphy USA’s high-volume, low-cost business model drives strong profitability in a competitive retail fuel market, with ownership of over 90% of its stations keeping operating expenses low and proximity to Walmart supercenters supporting above-average fuel sales.
MUSA’s sourcing infrastructure allows access to lower-cost fuel, enabling competitive pricing while maintaining margins. Store-level earnings demonstrate a structural cost advantage, supporting volume and market share growth.
Leadership in nicotine products, expanding market share in cigarettes and pouches, and promotional programs further strengthen traffic and profits. MUSA’s aggressive store expansion, larger modernized formats, and diversified merchandise offerings drive long-term growth.
Murphy USA has an expected revenue and earnings growth rate of 10.6% and 24.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.4% over the last seven days.
The post-Iran-war rebound has been fast and furious — but rising tides lift all boats, including the leaky ones. When every stock is going up, separating genuine quality from speculative momentum feels nearly impossible. That won’t matter until it suddenly does.
Right now, two of them are coming off blowout earnings — one with an 85% year-over-year surge in its highest-growth division, another with a 44% EPS beat that sent shares up 14% in a single session. One just announced its 17th consecutive dividend increase, this one above 20%. Here’s what the quality screen found.
Like KLAC, AGX has found consistent support at the 50-day moving average, helping push the stock up more than 130% year-to-date. A gain of that magnitude in three months will tempt some profit-taking, and the RSI does look extended above 75. But the Moving Average Convergence Divergence (MACD) indicator shows bullish momentum is still building — suggesting the stock may have further to run before the next meaningful pullback.
Murphy USA Inc. (NYSE:MUSA) Benzinga Edge Quality Score: 94.99
Monolithic Power Systems Inc. (NASDAQ:MPWR) Benzinga Edge Quality Score: 91.93
Market News and Data brought to you by Benzinga APIs
EL DORADO, Ark.--(BUSINESS WIRE)--The Board of Directors of Murphy USA Inc. (NYSE: MUSA) today declared a quarterly cash dividend on the Common Stock of Murphy USA Inc. of $0.64 per share, or $2.56 per share on an annualized basis. This represents an increase of 28% from the Q2 2025 dividend and is 1.6% above the Q1 2026 dividend. The dividend is payable on June 1, 2026, to stockholders of record as of May 18, 2026. About Murphy USA Murphy USA (NYSE: MUSA) is a leading retailer of gasoline and.
EL DORADO, Ark.--(BUSINESS WIRE)--Murphy USA Inc. (“Murphy USA”) (NYSE: MUSA) announced today the planned private offering of $500 million aggregate principal amount of senior notes due 2034 (the “Notes”) by its wholly owned subsidiary, Murphy Oil USA, Inc. (the “Issuer”), subject to market and other conditions. The Notes will be guaranteed on a senior unsecured basis by Murphy USA and by certain of Murphy USA's domestic subsidiaries. Murphy USA intends to use the net proceeds from the offering.
EL DORADO, Ark.--(BUSINESS WIRE)--Murphy USA Inc. (“Murphy USA”) (NYSE: MUSA) announced today that it has priced its previously announced private offering of $500 million aggregate principal amount of senior notes due 2034 (the “Notes”) by its wholly owned subsidiary, Murphy Oil USA, Inc. (the “Issuer”). The Notes will be guaranteed on a senior unsecured basis by Murphy USA and by certain of Murphy USA's domestic subsidiaries. The Notes will be issued at an issue price of 100.000%. The offering.
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.00% per year. These returns cover a period from January 1, 1988 through May 4, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
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Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Murphy USA (MUSA - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this gasoline station operator is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Murphy USA is 11.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 31.9% this year, crushing the industry average, which calls for EPS growth of 22.1%.
Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.
Right now, Murphy USA has an S/TA ratio of 4.17, which means that the company gets $4.17 in sales for each dollar in assets. Comparing this to the industry average of 3.09, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Murphy USA looks attractive from a sales growth perspective as well. The company's sales are expected to grow 13.6% this year versus the industry average of 11.1%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Murphy USA. The Zacks Consensus Estimate for the current year has surged 24.6% over the past month.
Bottom LineMurphy USA has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Murphy USA is a potential outperformer and a solid choice for growth investors.
Key Takeaways Buying the best value stocks in May as the stock market looks overheated. Surging gas station and convenience store giant MUSA is a market-crushing value stock to buy now and hold. Stocks dipped again on Tuesday, following their drop on Monday. The market appears due for a larger pullback at some point after the massive AI and chip-driven rally to new highs has things looking a bit overheated.
Nvidia’s earnings report on Wednesday may serve as a catalyst for either a rebound to new highs or trigger a much-deserved drawdown.
Either way, investors likely don’t want to pile into overheated AI stocks right now. Instead, they might want to consider buying best-in-class value stocks.
Today, we explore how investors can find highly-ranked—Zacks Rank #1 (Strong Buy) or #2 (Buy)—value stocks to buy in May and going forward.
Screen Basics: Finding the Best Value Stocks to Buy NowThe screen we are digging into today comes loaded with the Research Wizard and aims to sort through highly-ranked Zacks stocks to find some of the top value names.
This value-focused screen searches only for stocks that boast Zacks Rank #1 (Strong Buys) or #2 (Buys). It also focuses on stocks with price-to-earnings (P/E) ratios under the median for its industry. The screen also looks for stocks with price-to-sales (P/S) ratios under the median for its industry to help lock in relative value compared to its peers, since basing it off the wider market is not always the most useful tool.
The screen then digs into quarterly earnings rates above the median for its industry. This particular Zacks screen also uses a special blend of upgrades and estimates revisions to select the best seven stocks in this list.
The screen basics are listed below…
· Only Zacks Rank #1 (Strong Buy) or #2 (Buy) Stocks
· P/E (using 12-month EPS) - Under the Median for its Industry
· P/S - Under the Median for its Industry
· Percentage Change Act. EPS Q(0)/Q(-1)
· Rating Change and Revisions Factors (to help narrow the list to the 7 best stocks in this list)
This strategy comes loaded with the Research Wizard and it is called bt_sow_value_method1. It can be found in the SoW (Screen of the Week) folder.
The screen is simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Best Soaring Value Stocks to Buy Now and Hold Forever: MUSAMurphy USA (MUSA - Free Report) is a gas station and convenience store powerhouse, operating roughly 1,700 stores across 27 states. MUSA boasts that it serves around 1.7 million customers daily. The company is benefiting from surging gas prices in 2026 and strong convenience store spending, highlighted by what it called “exceptional nicotine performance” in the first quarter.
Image Source: Zacks Investment Research
The gas station giant posted blowout Q1 results and raised its guidance. MUSA’s fiscal 2026 earnings estimate has ripped 26% higher since its April 29 release, with its 2027 estimate up 8%.
Its improving bottom-line outlook helps it land its Zacks Rank #1 (Strong Buy) right now. The recent positivity helped its 2026 EPS estimate overtake where it was in early 2025 before it suffered a wave of downward revisions that contributed to Murphy USA stock’s disappointing 2025.
Image Source: Zacks Investment Research
MUSA is projected to grow its revenue by 14% in 2026 to help boost its adjusted earnings by 32%. The company also pays a dividend and stands to benefit from the current economic turmoil since buying gas and small convenience store items (especially nicotine) are two categories that are difficult to cut back on.
Image Source: Zacks Investment Research
Murphy USA stock has surged 750% in the past 10 years to more than double the S&P 500 and blow away its sector’s 225%. This includes a 300% charge in the past five years, and a 40% YTD to fresh highs. Despite its outperformance and its run to a record high to start May, MUSA trades near its 10-year median, at a 25% discount to both its 10-year highs and the Zacks Retail sector at 18.3X forward 12-month earnings.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Murphy USA Inc. (MUSA - Free Report) : This retail fuel and convenience merchandise company has seen the Zacks Consensus Estimate for its current year earnings increasing 21.9% over the last 60 days.
StoneX Group Inc. (SNEX - Free Report) : This financial market infrastructure company has seen the Zacks Consensus Estimate for its current year earnings increasing 13.9% over the last 60 days.
Green Plains Inc. (GPRE - Free Report) : This low-carbon fuels company has seen the Zacks Consensus Estimate for its current year earnings increasing 337.5% over the last 60 days.
Flywire Corporation (FLYW - Free Report) : This fintech company has seen the Zacks Consensus Estimate for its current year earnings increasing 17.7% over the last 60 days.
EOG Resources, Inc. (EOG - Free Report) : This oil and gas company has seen the Zacks Consensus Estimate for its current year earnings increasing 41.5% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Murphy USA (MUSA - Free Report) Murphy USA Inc. is a leading independent retailer of motor fuel and convenience merchandise in the United States. The El Dorado, AR-based company, in its current form, came into existence following the 2013 spin-off of Murphy Oil Corporation’s downstream business into a separate, independent and publicly-traded entity.
MUSA is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. MUSA has a Momentum Style Score of B, and shares are up 6.9% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $6.60 to $31.48 per share. MUSA also boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MUSA should be on investors' short list.
Stocks hitting their 52-week high and delivering consistent performances offer attractive opportunities to investors while building a portfolio. This is because stocks near that level are perceived to be winners. However, stocks touching a new 52-week high are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
Investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as Murphy USA (MUSA - Free Report) , DaVita (DVA - Free Report) , Microchip Technology (MCHP - Free Report) and Cenovus Energy (CVE - Free Report) are expected to maintain their momentum and keep scaling new highs. Extensive information on a stock is necessary to understand whether or not there is scope for upside.
Here, we discuss a strategy to find the right stocks. The strategy borrows from the basics of momentum investing. This technique bets on “buy high, sell higher.”
We ran a screen to zero in on 52-week high stocks (trading near the high level) that hold tremendous upside potential. The screen includes parameters to shortlist stocks with strong earnings growth expectations, sturdy value metrics and price momentum.
Moreover, the screen filters stocks that are relatively undervalued compared to their peers in terms of earnings as well as sales, ensuring the continuation of their rally for some time.
Current Price/52 Week High >= .11: This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.11 implies that the stock is trading within 20% of its 52-week high range.
% Change Price – 4 Weeks > 0: It ensures that the stock price has moved north over the past four weeks.
% Change Price – 12 Weeks > 0: This metric guarantees a continued upward price momentum for the stock over the past three months as well.
Price/Sales <= XIndMed: The lower, the better.
P/E using F(1) Estimate <= XIndMed: This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to the industry.
1-Year EPS Growth F(1)/F(0) >= XIndMed: This helps choose stocks that have higher growth rates than the industry. This is a meaningful indicator, as decent earnings growth adds to investor optimism.
Zacks Rank =1: No screening is complete without the Zacks Rank, which has proved its worth since its inception. It is a fundamental truth that stocks with a Zacks Rank #1 have always managed to brave adversities and beat the market average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price >= 8: This parameter will help screen stocks that are trading at $8 or higher.
Volume – 20 days (shares) >= 100000: The inclusion of this metric ensures that there is a substantial volume of shares, so trading is easier.
Here are our four picks out of the 29 stocks, each carrying a Zacks Rank #1, that made it through the screen:
Murphy USA presents a near-term fundamental case. First-quarter 2026 results showed net income of $136.3 million ($7.28 per diluted share) compared with $53.2 million in the year-ago quarter. Total fuel contribution jumped to 35.0 cpg from 25.4 cpg due to market volatility and fuel supply strength. Merchandise contribution grew 7.3% to $210.2 million on unit margins of 20.0%. April all-in margins are tracking 35–40 cpg with volumes roughly flat year-over-year. Full-year 2026 guidance targets merchandise contribution of $890–$900 million and Adjusted EBITDA of approximately $1 billion. With 28 stores under construction and 45–55 new openings planned, organic growth supports earnings expansion. In May 2026, the board raised the quarterly dividend to 64 cents per share; a $2 billion repurchase authorization reinforces shareholder returns.
The Zacks Consensus Estimate for the company’s 2026 earnings has moved 26.5% north to $31.48 per share in the past 60 days. MUSA surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.56%.
DaVita enters the near term with strengthened fundamentals following first-quarter 2026 results. Revenues reached $3.42 billion, up approximately 6% year over year, driven by improved treatment volumes, a 4% rise in revenue per treatment, and lower patient care costs. Adjusted operating income of $482 million came in $50 million ahead of plan. Management raised full-year adjusted operating income guidance to $2.15–$2.25 billion and adjusted EPS guidance to $14.10–$15.20. The Integrated Kidney Care segment recorded record aggregate CKCC program savings, reflecting a 4.5% gross savings rate improvement. Volume gains are further supported by patient transfers from competitor clinic closures. Deployment of AI-driven staffing tools and sustained labor efficiencies underpin the company's 2.6% five-year cost CAGR target, reinforcing near-term operational momentum.
The Zacks Consensus Estimate for the company’s 2026 earnings has moved 6.4% north to $15.07 per share in the past 60 days. DVA’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 2.4%.
Microchip Technology's near-term fundamentals reflect a well-grounded recovery. Fourth-quarter fiscal 2026 net sales of $1.311 billion exceeded the guidance midpoint, rising 35.1% year over year and 10.6% sequentially. Non-GAAP EPS of 57 cents beat the guided 48–52 cents range. Distributor inventory fell to 26 days, near the low end of historical norms, enabling higher factory utilization and margin expansion ahead. For the first quarter of fiscal 2027, the company guided net sales of $1.442–$1.469 billion — up 11% sequentially — with non-GAAP EPS of 67–71 cents and non-GAAP gross margin of 62.25%–63.25%. April 2026 product launches, including post-quantum cryptography root of trust controllers and expanded CLB-based MCUs, deepen Microchip's addressable footprint in data center, defense, and industrial markets. A quarterly dividend of 45.5 cents per share underscores financial discipline.
The Zacks Consensus Estimate for the company’s 2026 earnings has moved 18% north to $3.02 per share in the past 60 days. MCHP surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.72%.
Cenovus Energy presents a near-term fundamental case grounded in production strength and robust cash generation. First-quarter 2026 upstream production reached a record 972,100 BOE/d, up 19% year over year, with free funds flow of $2.2 billion. Downstream operations delivered a 97% crude unit utilization rate and U.S. Refining adjusted market capture of 114%. The board raised the quarterly base dividend 10% to 22 cents per share beginning the second quarter of 2026, with $1.0 billion returned to shareholders in the first quarter. Key catalysts include West White Rose’s first oil targeted for the third quarter of 2026, Christina Lake North's 40-well redevelopment ramping through H2 2026, and Sunrise progressing toward 70,000 bbls/d by 2028. A $275 million commercial fuels divestiture supports progress toward the $4 billion long-term net debt target.
The Zacks Consensus Estimate for the company’s 2026 earnings has increased by 166.4% to $3.01 per share in the past 60 days. CVE’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 50.8%.
Key Takeaways Micron Technology made the screen with a B Momentum Score and 21.7% average EPS surprise.MUSA qualified with a B Momentum Score and a 16.6% trailing four-quarter EPS surprise.Vertiv earned a B Momentum Score and posted a 14.7% average EPS surprise rate. Investors seeking exceptional returns should focus on Wall Street’s strongest momentum names. To identify stocks with continued upside potential, they can follow Richard Driehaus’s celebrated “buy high and sell higher” strategy, which earned him a place on Barron’s All-Century Team.
By applying the Driehaus strategy, Micron Technology, Inc. (MU - Free Report) , Murphy USA Inc. (MUSA - Free Report) and Vertiv Holdings Co (VRT - Free Report) have emerged as strong momentum plays and attractive buying opportunities.
A Deep Dive Into Richard Driehaus’s Winning Investment StrategyRegarding the strategy, Driehaus once said: “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American Association of Individual Investors (“AAII”) considered the 50-day moving average as one of the key criteria when creating a portfolio in line with Driehaus’ philosophy.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend.
Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.
Research Wizard Screening Criteria: To make the strategy more profitable, we have considered only those stocks that have a Zacks Rank #1 (Strong Buy) and a Momentum Score of A or B. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1, offer the best upside potential.
• Zacks Rank equal to #1
No matter whether the market is good or bad, stocks with a Zacks Rank #1 have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
• Last 5-year average EPS growth rates above 2%
Strong EPS growth history ensures an improving business
• Trailing 12-month EPS growth greater than 0 and industry median
Higher EPS growth compared to the industry average indicates superior earnings performance
• Last four-quarter average EPS surprise greater than 5%
Solid EPS surprise history indicates better price performance
• Positive percentage change in 50-day moving average and relative strength over 4 weeks
Positive percentage change in the 50-day moving average and the relative strength signal uptrend
• Momentum Score equal to or less than B
A favorable momentum score indicates that it is ideal to capitalize on the momentum with the highest probability of success.
These few parameters have narrowed the universe of more than 7,743 stocks to only 19.
Here are three of the 19 stocks:
Micron TechnologyMicron Technology develops and manufactures memory and storage products, serving markets across the United States, Asia, Europe, and other global regions. It has a Momentum Score of B. The trailing four-quarter earnings surprise for MU is 21.7%, on average (read more: Missed NVIDIA? This AI Stock Up 600%+ Could Be the Biggest 2026 Winner).
Murphy USAMurphy USA markets retail fuel products and convenience store merchandise. It has a Momentum Score of B. The trailing four-quarter earnings surprise for MUSA is 16.6%, on average.
VertivVertiv supplies digital infrastructure solutions for data centers and communication networks globally. It has a Momentum Score of B. The trailing four-quarter earnings surprise for VRT is 14.7%, on average.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Murphy USA (MUSA - Free Report) Murphy USA Inc. is a leading independent retailer of motor fuel and convenience merchandise in the United States. The El Dorado, AR-based company, in its current form, came into existence following the 2013 spin-off of Murphy Oil Corporation’s downstream business into a separate, independent and publicly-traded entity.
MUSA is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.24; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $6.60 to $31.48 per share. MUSA also boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, MUSA should be on investors' short list.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Murphy USA (MUSA - Free Report) : This company, which is a leading independent retailer of motor fuel and convenience merchandise in the United States, has seen the Zacks Consensus Estimate for its current year earnings increasing 23.4% over the last 60 days.
Flexsteel Industries (FLXS - Free Report) : This company, which is engaged in the design, manufacture and sale of a broad line of quality upholstered furniture for residential, commercial, and recreational vehicle seating use, has seen the Zacks Consensus Estimate for its current year earnings increasing 16.9% over the last 60 days.
Alerus Financial (ALRS - Free Report) : This financial services company, which offers financial solutions to businesses and consumers, has seen the Zacks Consensus Estimate for its current year earnings increasing 13.9% over the last 60 days.
Healthcare Services Group (HCSG - Free Report) : This company, which provides housekeeping, laundry, linen, facility maintenance and food services to the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals, has seen the Zacks Consensus Estimate for its currentyear earnings increasing 7.5% over the last 60 days.
DAVE INC (DAVE - Free Report) : This company, which provide banking app to build products with the financial playing field, has seen the Zacks Consensus Estimate for its current year earnings increasing 6.2% over the last 60 day.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 27th:
NetScout Systems (NTCT - Free Report) : This company, which is a leading provider of business assurance - a powerful combination of service assurance, cybersecurity, and business intelligence solutions - for today's most demanding service provider, enterprise and government networks, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.1% over the last 60 days.
NetScout Systems' shares gained 44.2% over the last three month compared with the S&P 500’s gain of 9.4%. The company possesses a Momentum Score of A.
Murphy USA (MUSA - Free Report) : This company, which is a leading independent retailer of motor fuel and convenience merchandise in the United States, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 23.4% over the last 60 days.
Murphy USA’s shares gained 36.1% over the last three month compared with the S&P 500’s gain of 9.4%. The company possesses a Momentum Score of A.
Fox (FOXA - Free Report) : This company, which is a news, sports and entertainment content provider, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.6% over the last 60 days.
Fox’s shares gained 15.9% over the last three month compared with the S&P 500’s gain of 9.4%. The company possesses a Momentum Score of A.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Key Takeaways NXST, MUSA, LYB and AVT screened on the basis of PEG, valuation and earnings growth metrics.LyondellBasell projects strong growth, with a 49.4% long-term expected earnings rate.Avnet posted a 43.3% five-year growth rate and holds a Value Score of A. Elevated interest rates, persistent geopolitical tensions and uneven global growth have kept market uncertainty high through mid-2026. As a result, investors are increasingly focusing on companies with stable cash flows, resilient balance sheets and reasonable valuations instead of richly priced speculative names. Moreover, after the sharp rally in several AI and momentum-driven stocks over the past year, valuation disparities across sectors have widened significantly.
This backdrop has created selective opportunities in fundamentally strong but overlooked businesses, making value investing increasingly attractive for investors seeking downside protection alongside sustainable earnings growth. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks - Nexstar Media Group (NXST - Free Report) , Murphy USA (MUSA - Free Report) , LyondellBasell Industries (LYB - Free Report) and Avnet (AVT - Free Report) .
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to “value traps.” In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.
PEG Ratio at a GlanceThe PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn’t 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 turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are some of the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (for more accurate valuation purposes)
Zacks Rank #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 Style Score of A or B when combined with a Zacks Rank #1, 2 or 3 (Hold) offer the best upside potential.
Our PEG-Driven PicksHere are four stocks that qualified the screening:
Nexstar: It operates television and radio stations across the United States, providing local and national news, sports and entertainment content. The company also owns NewsNation and WGN-AM while offering digital advertising, streaming and multimedia services through various online platforms.
NXST currently has a Zacks Rank #1 and a Value Score of B. Nexstar also has an impressive five-year expected growth rate of 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA: This is a leading U.S. fuel and convenience retailer operating more than 1,700 stores under the Murphy USA, Murphy Express and QuickChek brands across 27 states. The company primarily operates near Walmart locations and also manages fuel distribution and ethanol production assets.
MUSA currently has a Zacks Rank #1 and a Value Score of B. DVA also has an impressive five-year historical growth rate of 16.6%.
LyondellBasell: This is a global chemicals, plastics and refining company operating across 18 countries. The company produces olefins, polyethylene and polypropylene used in automotive, packaging, construction and electronics industries, generating roughly $30 billion in 2025 revenue.
Apart from a discounted PEG and P/E, LyondellBasell currently has a Zacks Rank #1 and a Value Score of B. LYB has a long-term expected growth rate of 49.4%.
Avnet: It is a global distributor of electronic components and computer products serving customers in more than 140 countries. The company supplies semiconductors, embedded systems and related services through its Electronic Components and Farnell segments to OEMs, EMS providers and resellers.
Avnet has a Zacks Rank #2 and a Value Score of A. AVT also has an impressive five-year historical growth rate of 43.3%.
A month has gone by since the last earnings report for Murphy USA (MUSA - Free Report) . Shares have lost about 13% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Murphy USA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
MUSA Q1 Earnings Beat Estimates on Strong Fuel ContributionMotor fuel retailer Murphy USA posted first-quarter 2026 earnings of $7.28 per diluted share, up 176.8% from $2.63 a year ago and ahead of the Zacks Consensus Estimate of $5.37 by 35.6%. Total operating revenues rose 6.5% year over year to $4.8 billion and topped the consensus mark of $4.7 billion by 3.9%.
Results reflected a more favorable refined-products environment and solid execution, with total fuel contribution of 35 cents per gallon and total retail fuel volumes up 2.1% year over year.
Fuel Results Benefit From Pricing DynamicsTotal fuel contribution climbed 40.6% year over year to $403.9 million, supported by both higher margins and higher volumes. Retail fuel contribution increased 9.5% to $293 million as retail fuel margin expanded to 25.4 cents per gallon from 23.7 cents a year earlier.
Fuel supply, including RINs, also swung meaningfully positive, contributing 9.6 cents per gallon versus 1.7 cents per gallon in the year-ago quarter. Management attributed the fuel supply lift largely to market-driven pricing effects and the timing of inventory movements during the period.
Merchandise Mix Keeps Increasing ContributionMerchandise contribution increased 7.3% to $210.2 million, driven by higher sales volume and improved unit margins. Merchandise sales advanced 5% year over year to $1 billion, while average unit margin improved to 20% from 19.6%.
On a same-store basis, total merchandise contribution rose 4.9%. Nicotine remained the standout, with nicotine contribution on a same-store basis increasing to $20.2 thousand per store month from $18.5 thousand, while non-nicotine contribution was $19.7 thousand versus $19.9 thousand a year ago.
Management emphasized that customer behavior shifts tend to build as higher pump prices persist. In April, the company indicated volumes were running roughly flat to the prior year on an average per-store month basis, alongside expectations for all-in fuel margins between 35 cents and 40 cents per gallon for the month.
Loyalty metrics were a notable signal of traffic opportunity. Murphy Drive Rewards added about 600,000 members in a month, the highest monthly total since 2022, and management also cited year-over-year increases of 8.5% in active members and about 12% in total transactions, pointing to more frequent visits even as baskets may moderate.
Profitability gains were not limited to fuel and merchandise. Adjusted EBITDA rose to $277.9 million from $157.4 million in the prior-year quarter, reflecting a higher contribution against relatively steady operating cost intensity.
Below the operating line, interest expense increased to $29 million from $25.4 million, while the effective tax rate rose to about 22.6% from 14.1% a year ago. The higher rate reflected lower excess tax benefits tied to share-based compensation, partially offset by federal energy tax credits.
Balance SheetMurphy USA ended the quarter with $118.6 million of cash and cash equivalents and $2.1 billion of long-term debt, with a debt-to-capitalization of 76.4%. Operating cash flow increased to $320 million from $128.5 million a year ago, aided by working capital dynamics.
Capital returns remained active. During the quarter, the company repurchased about 169,000 shares for $70.9 million at an average price of $419.87 per share and paid a quarterly dividend of 63 cents per share. On the growth front, Murphy USA opened six new-to-industry stores and closed three QuickChek sites, ending March with 1,803 stores. It had 28 total sites under construction at quarter-end (including raze-and-rebuild projects) and reiterated that it is on pace to open 45 to 55 new stores in 2026. As of March 31, $221.4 million remained under the 2023 repurchase authorization, with an additional $2 billion authorization set to become effective once that program is completed.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 16.83% due to these changes.
VGM ScoresAt this time, Murphy USA has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Murphy USA has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
A strong stock as of late has been Murphy USA (MUSA - Free Report) . Shares have been marching higher, with the stock up 4% over the past month. The stock hit a new 52-week high of $614.24 in the previous session. Murphy USA has gained 51.7% since the start of the year compared to the -0.5% move for the Zacks Retail-Wholesale sector and the 61.9% return for the Zacks Retail - Convenience Stores industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 29, 2026, Murphy USA reported EPS of $7.28 versus consensus estimate of $5.37.
For the current fiscal year, Murphy USA is expected to post earnings of $32.32 per share on $22.18 in revenues. This represents a 34.11% change in EPS on a 14.41% change in revenues. For the next fiscal year, the company is expected to earn $29.56 per share on $21.74 in revenues. This represents a year-over-year change of -8.51% and -1.95%, respectively.
Valuation MetricsMurphy USA may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Murphy USA has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 31.9X. On a trailing cash flow basis, the stock currently trades at 15.2X versus its peer group's average of 22.1X. Additionally, the stock has a PEG ratio of 2.01. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Murphy USA currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Murphy USA fits the bill. Thus, it seems as though Murphy USA shares could have potential in the weeks and months to come.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 12:
Valero Energy Corporation (VLO - Free Report) : This energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 49.8% over the last 60 days.
Valero has a PEG ratio of 0.38 compared with 0.49 for the industry. The company possesses a Growth Score of B.
Murphy USA Inc. (MUSA - Free Report) : This retail fuel marketing company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.7% over the last 60 days.
Murphy has a PEG ratio of 2.01 compared with 2.36 for the industry. The company possesses a Growth Score of A.
Marathon Petroleum Corporation (MPC - Free Report) : This integrated downstream energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 39.8% over the last 60 days.
Marathon Petroleum has a PEG ratio of 0.42 compared with 0.49 for the industry. The company possesses a Growth Score of B.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
