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It has been about a month since the last earnings report for Murphy USA (MUSA - Free Report) . Shares have lost about 2.6% 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 its most recent earnings report in order to get a better handle on the important catalysts.

Murphy USA Q2 Earnings Beat Estimates on Strong Fuel ContributionMotor fuel retailer Murphy USA reported second-quarter 2026 earnings of $11.27 per share, up 53.1% from $7.36 a year ago and ahead of the Zacks Consensus Estimate of $9.40 by 19.89%. The El Dorado, AR-based company’s total operating revenues surged 36% year over year to $6.81 billion and beat the Zacks Consensus Estimate of $5.90 billion by 15.34%.

Results benefited from stronger fuel economics, higher total retail volumes and merchandise contribution growth. Same-store fuel volumes increased 0.5%, while total retail gallons advanced 3.9%.

Fuel Economics Drive Strong ContributionTotal fuel contribution increased 32% year over year to $518.8 million. Moreover, the reported figure beat our estimate of $447.4 million. Retail fuel contribution climbed 25% to $448.9 million as retail fuel margins expanded to 35.1 cents per gallon from 29.2 cents in the prior-year quarter.  Both Retail fuel contribution and margins exceeded our estimates of $362 million and 29 cents per gallon, respectively.

All-in fuel contribution reached 40.6 cents per gallon, up from 32 cents a year earlier. Fuel supply, including RINs, contributed 5.5 cents per gallon compared with 2.8 cents. Management noted that tighter supply conditions supported stronger spot-to-rack spreads, while higher RIN prices aided results, though that timing benefit is not expected to persist through the second half.

Merchandise Growth Remains ResilientTotal merchandise contribution rose 4% to $227.4 million, supported by higher merchandise sales and improved unit margins. Merchandise sales increased to $1.13 billion from $1.09 billion, while unit margin edged up to 20.1% from 20%.

Nicotine remained the main growth engine. Same-store nicotine sales and margins increased 2.4% and 4.6%, respectively. Cigarette sales and margins returned to growth, while nicotine-pouch unit volume more than doubled. Non-nicotine same-store sales declined 1.4%, although margins improved 0.2%.

Store and other operating expenses increased to $308.7 million from $275.2 million. Higher payment fees accounted for roughly two-thirds of the quarterly increase as higher retail fuel prices raised transaction costs. Employee-related expenses and new-store operating costs also contributed to the increase.

Still, store operating expenses excluding payment fees and rent rose only 1.1% on an average-per-store-month basis to $36,500. SG&A increased to $60.5 million from $50.9 million, primarily reflecting employee-related expenses and higher incentive accruals.

MUSA added six new-to-industry stores during the quarter and ended June with 1,806 locations. At quarter-end, 36 stores were under construction, including 32 new-to-industry sites and four raze-and-rebuild projects.

Management expects 2026 new-store additions to be closer to 45, the low end of its 45-55 range, absent tuck-in acquisitions. The company also reduced planned raze-and-rebuild activity to about 10 stores and is directing more resources toward new development, its land pipeline and stores scheduled to open in 2027.

Balance SheetOperating cash flow totaled $235 million in the quarter. Murphy USA ended June with $175.4 million in cash and cash equivalents and roughly $2.17 billion of long-term debt, with a debt-to-total capital of about 73.6%. Its revolving credit facility was undrawn at quarter-end.

This company repurchased about 143,100 shares for $76.8 million at an average price of $536.60 and paid a quarterly dividend of 64 cents per share. Capital expenditures are now expected near the high end of the $475-$525 million range as spending shifts toward growth, land purchases and proactive maintenance. 

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM ScoresAt this time, Murphy USA has a strong Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for value investors.

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. Notably, Murphy USA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Murphy USA is rated a Buy, supported by robust 2Q26 results, strong EBITDA growth forecasts, and discounted valuation relative to peers. MUSA's vertically integrated supply platform and store expansion into larger formats underpin sustainable fuel margins and future earnings growth. Nicotine market share gains, especially in oral nicotine, and resilient merchandise sales drive incremental margin and revenue upside.

Posted by Defense World Staff on Aug 14th, 2026

Bank of America Corp DE trimmed its position in shares of Murphy USA Inc. (NYSE:MUSA – Free Report) by 41.2% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 83,671 shares of the specialty retailer’s stock after selling 58,686 shares during the quarter. Bank of America Corp DE owned 0.45% of Murphy USA worth $41,331,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently bought and sold shares of the company. WINTON GROUP Ltd bought a new position in Murphy USA in the 4th quarter valued at $6,874,000. Evergreen Wealth Partners LLC bought a new position in Murphy USA in the 4th quarter valued at $1,333,000. Recurrent Investment Advisors LLC boosted its stake in Murphy USA by 23.2% during the first quarter. Recurrent Investment Advisors LLC now owns 146,119 shares of the specialty retailer’s stock valued at $71,986,000 after buying an additional 27,513 shares during the period. Millennium Capital Advisors LLC purchased a new position in Murphy USA in the 4th quarter worth approximately $1,029,000. Finally, VELA Investment Management LLC lifted its stake in Murphy USA by 45.4% during the fourth quarter. VELA Investment Management LLC now owns 9,765 shares of the specialty retailer’s stock worth $3,940,000 after purchasing an additional 3,051 shares during the last quarter. 80.81% of the stock is owned by hedge funds and other institutional investors.

Murphy USA Stock Up 3.1% Shares of MUSA stock opened at $563.88 on Friday. The company has a quick ratio of 0.54, a current ratio of 0.92 and a debt-to-equity ratio of 2.77. The stock has a market cap of $10.41 billion, a P/E ratio of 17.17, a PEG ratio of 1.61 and a beta of 0.28. Murphy USA Inc. has a 52 week low of $349.83 and a 52 week high of $636.04. The company’s fifty day simple moving average is $577.89 and its two-hundred day simple moving average is $513.65.

Murphy USA (NYSE:MUSA – Get Free Report) last announced its earnings results on Wednesday, August 5th. The specialty retailer reported $11.27 EPS for the quarter, topping analysts’ consensus estimates of $9.95 by $1.32. Murphy USA had a return on equity of 96.01% and a net margin of 2.87%.The firm had revenue of $6.81 billion during the quarter, compared to analysts’ expectations of $6.03 billion. During the same quarter in the previous year, the business earned $7.36 EPS. The company’s quarterly revenue was up 36.0% on a year-over-year basis. Analysts predict that Murphy USA Inc. will post 33.84 EPS for the current fiscal year.

Analyst Ratings Changes Several equities research analysts recently weighed in on MUSA shares. Bank of America increased their target price on Murphy USA from $600.00 to $625.00 and gave the company a “neutral” rating in a report on Friday, July 10th. Weiss Ratings raised Murphy USA from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday. The Goldman Sachs Group raised shares of Murphy USA from a “sell” rating to a “neutral” rating and lifted their price target for the company from $380.00 to $550.00 in a research report on Monday, July 6th. Zacks Research downgraded shares of Murphy USA from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 22nd. Finally, Capital One Financial started coverage on Murphy USA in a research report on Monday, June 22nd. They set an “overweight” rating and a $710.00 price objective on the stock. Six investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $606.89.

Read Our Latest Stock Analysis on Murphy USA

Insider Activity In related news, SVP Renee M. Bacon sold 1,050 shares of the company’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $529.44, for a total transaction of $555,912.00. Following the completion of the sale, the senior vice president owned 3,083 shares of the company’s stock, valued at approximately $1,632,263.52. This represents a 25.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Diane N. Landen sold 3,000 shares of the business’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $547.25, for a total transaction of $1,641,750.00. Following the transaction, the director directly owned 53,841 shares in the company, valued at approximately $29,464,487.25. The trade was a 5.28% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 9.02% of the company’s stock.

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.

Further Reading Five stocks we like better than Murphy USA Asian Market Circuit Breakers Hit Stocks, Not AI Demand Riot Platforms Re-Wires the Ledger for a $9B AI Power Play Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy? Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal 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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Key Takeaways Murphy USA's Q2 EPS rose 53.1%, fueled by stronger fuel economics, volumes and merchandise contribution.MUSA's retail fuel margins expanded to 35.1 cents per gallon, lifting total fuel contribution 32%.Murphy USA expects about $636 million in 2026 net income, assuming a 35-cent second-half fuel margin. Motor fuel retailer Murphy USA Inc. (MUSA - Free Report) reported second-quarter 2026 earnings of $11.27 per share, up 53.1% from $7.36 a year ago and ahead of the Zacks Consensus Estimate of $9.40 by 19.89%. The El Dorado, AR-based company’s total operating revenues surged 36% year over year to $6.81 billion and beat the Zacks Consensus Estimate of $5.90 billion by 15.34%.

Results benefited from stronger fuel economics, higher total retail volumes and merchandise contribution growth. Same-store fuel volumes increased 0.5%, while total retail gallons advanced 3.9%.

MUSA's Fuel Economics Drive Strong ContributionTotal fuel contribution increased 32% year over year to $518.8 million. Moreover, the reported figure beat our estimate of $447.4 million. Retail fuel contribution climbed 25% to $448.9 million as retail fuel margins expanded to 35.1 cents per gallon from 29.2 cents in the prior-year quarter.  Both Retail fuel contribution and margins exceeded our estimates of $362 million and 29 cents per gallon, respectively.

All-in fuel contribution reached 40.6 cents per gallon, up from 32 cents a year earlier. Fuel supply, including RINs, contributed 5.5 cents per gallon compared with 2.8 cents. Management noted that tighter supply conditions supported stronger spot-to-rack spreads, while higher RIN prices aided results, though that timing benefit is not expected to persist through the second half.

Murphy USA's Merchandise Growth Remains ResilientTotal merchandise contribution rose 4% to $227.4 million, supported by higher merchandise sales and improved unit margins. Merchandise sales increased to $1.13 billion from $1.09 billion, while unit margin edged up to 20.1% from 20%.

Nicotine remained the main growth engine. Same-store nicotine sales and margins increased 2.4% and 4.6%, respectively. Cigarette sales and margins returned to growth, while nicotine-pouch unit volume more than doubled. Non-nicotine same-store sales declined 1.4%, although margins improved 0.2%.

MUSA Keeps Core Store Costs Under ControlStore and other operating expenses increased to $308.7 million from $275.2 million. Higher payment fees accounted for roughly two-thirds of the quarterly increase as higher retail fuel prices raised transaction costs. Employee-related expenses and new-store operating costs also contributed to the increase.

Still, store operating expenses excluding payment fees and rent rose only 1.1% on an average-per-store-month basis to $36,500. SG&A increased to $60.5 million from $50.9 million, primarily reflecting employee-related expenses and higher incentive accruals.

Murphy USA Refines Its Store Growth PlansMUSA added six new-to-industry stores during the quarter and ended June with 1,806 locations. At quarter-end, 36 stores were under construction, including 32 new-to-industry sites and four raze-and-rebuild projects.

Management expects 2026 new-store additions to be closer to 45, the low end of its 45-55 range, absent tuck-in acquisitions. The company also reduced planned raze-and-rebuild activity to about 10 stores and is directing more resources toward new development, its land pipeline and stores scheduled to open in 2027.

MUSA Balances Growth, Spending and Shareholder ReturnsOperating cash flow totaled $235 million in the quarter. Murphy USA ended June with $175.4 million in cash and cash equivalents and roughly $2.17 billion of long-term debt, with a debt-to-total capital of about 73.6%. Its revolving credit facility was undrawn at quarter-end.

This Zacks Rank #3 (Hold) company repurchased about 143,100 shares for $76.8 million at an average price of $536.60 and paid a quarterly dividend of 64 cents per share. Capital expenditures are now expected near the high end of the $475-$525 million range as spending shifts toward growth, land purchases and proactive maintenance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Murphy USA Sees Higher 2026 Earnings PowerManagement expects merchandise contribution to finish near the low end of the $890-$900 million range. Store operating expenses excluding payment fees, rent and SG&A are also tracking toward the low ends of their respective guided ranges, while the tax rate is expected near the high end of 23-25%.

First-half all-in fuel margins averaged 37.9 cents per gallon. Assuming a relatively conservative 35-cent margin in the second half, management expects full-year net income of about $636 million and adjusted EBITDA of approximately $1.25 billion. Management also indicated that sustained fuel-price declines could create upside to both volumes and margins by improving MUSA's ability to differentiate on price.

Important Energy Earnings at a GlanceWhile we have discussed MUSA’s second-quarter results in detail, let us take a look at three other key reports in the energy space.

Houston, TX-based oil and gas equipment and services provider Halliburton (HAL - Free Report) posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level.

As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.

Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation (RRC - Free Report) reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.

Range Resources’ net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. It repurchased $78 million of shares and paid $24 million in dividends during the quarter.

Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. (KMI - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.

As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.

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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 15.85; value investors should take notice.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.49 to $32.81 per share. MUSA boasts an average earnings surprise of +19.6%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, MUSA should be on investors' short list.

Key Takeaways Murphy USA set a 35-cent-per-gallon second-half fuel-margin assumption after Q2 reached 40.6 cents.MUSA expects about $636 million in 2026 net income and $1.25 billion in adjusted EBITDA using that floor.Murphy USA saw loyalty sign-ups top 600,000 monthly in Q2 as May fuel volume rose 1.6%. Murphy USA Inc. (MUSA - Free Report) used its second-quarter 2026 earnings call to emphasize a higher fuel-margin floor while keeping second-half assumptions conservative.

President and CEO Mindy West said that management is guiding to commitments it can deliver, while falling fuel prices could improve volumes and margins.

MUSA Sees a Higher Fuel Margin FloorMindy West said that competitors remain rational and margins are stabilizing without a prolonged price decline. The second-half assumption is 35 cents per gallon in all-in fuel margin.

An RBC Capital Markets analyst asked whether that level could carry into next year. West said that marginal retailers’ higher breakeven economics support the floor, though Murphy USA is not issuing 2027 guidance.

Second-quarter total fuel contribution reached 40.6 cents per gallon versus 32 cents a year earlier. Earnings of $11.27 topped the Zacks Consensus Estimate of $9.4, while revenues of $6.81 billion exceeded the $5.9 billion estimate.

Murphy USA Keeps a Conservative Second-Half ViewUsing the 35-cent assumption, West said that management expects 2026 net income of approximately $636 million and adjusted EBITDA of $1.25 billion. First-half all-in fuel margin was 37.9 cents per gallon.

A Wells Fargo Securities analyst questioned the unchanged same-store fuel-volume guidance of down 3% to down 1%. West replied that an extended price decline could improve volume and margin, but management is not building that into its outlook.

Merchandise contribution is expected near the low end of its $890 million to $900 million range. Store OPEX excluding payment fees and rent, and SG&A are expected near their low ends, while capital spending is tracking toward the high end.

MUSA Uses Loyalty to Capture Fuel TrafficA JPMorgan analyst asked about Murphy Drive Rewards enrollment. West said that monthly sign-ups exceeded 600,000 throughout Q2, versus roughly 400,000 previously, while new or lapsed customers approached 46%.

West added that automated offers are deepening engagement. She highlighted a $5 in-store purchase tied to a five-cent-per-gallon fuel discount as one pump-to-store tactic.

A KeyBanc Capital Markets analyst asked about fuel volumes. West said that same-store volume rose 1.6% in May as RBOB prices fell 16%, and was up 1.5% through the first five days of August.

Murphy USA Balances Store Growth and Capital ReturnsA Goldman Sachs analyst asked why new-store delivery is trending toward the low end of the 45-to-55 range. West said that the organic pipeline supports about 45 openings, while the upper end requires small tuck-in acquisitions.

A Melius Research analyst asked why capital spending is moving higher despite fewer raze-and-rebuilds. West cited pulling forward 2027 construction, expanding the land pipeline and replacing aging store equipment.

West added that share repurchases remain a major capital-allocation lever alongside growth spending. MUSA repurchased about 143,100 shares for $76.8 million in the second quarter.

MUSA Sees QuickChek StabilizingWest told a KeyBanc analyst that QuickChek’s second-quarter performance was stabilizing, with food-and-beverage sales and margins turning positive. Management is emphasizing sandwiches, bakery, coffee and promotions.

A Jefferies analyst asked about non-nicotine trends. West said that packaged beverages, led by energy, were strong, while lottery and beer remained challenged by customer spending pressure and changing preferences.

West said that nicotine remains a second-half tailwind, though the third quarter faces a difficult comparison against last year’s Zyn promotion. Second quarter merchandise contribution rose 4% to $227.4 million.

Murphy USA Emphasizes Execution Over Macro ForecastsCEO Mindy West’s closing posture centered on execution rather than forecasting favorable macro moves. She reiterated that the second-half outlook is built to a level management believes it can deliver.

West’s priorities include organic growth, loyalty engagement, QuickChek improvement and disciplined capital returns amid fuel-price volatility and merchandise pressure.

The call kept the focus on fuel advantages, customer retention and store execution without relying on a specific price path.

MUSA Rank and Style Scores Frame a Mixed SetupMUSA carries a Zacks Rank #3 (Hold), with a Value Score of B, a Growth Score of A, a Momentum Score of B and a VGM Score of A. The Style Score framework treats A and B grades as favorable, with its strongest combinations pairing them with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The profile combines favorable style characteristics with a neutral Zacks Rank. The Zacks Rank can change as analysts revise earnings estimates after the just-reported results, making the current ranking a snapshot rather than a fixed assessment.

Murphy USA (MUSA - Free Report) reported $6.81 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 36%. EPS of $11.27 for the same period compares to $7.36 a year ago.

The reported revenue represents a surprise of +15.33% over the Zacks Consensus Estimate of $5.9 billion. With the consensus EPS estimate being $9.40, the EPS surprise was +19.89%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Murphy USA performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total fuel contribution (cpg): 40.6 cents versus 36.45 cents estimated by three analysts on average.Fuel supply including RINs contribution (cpg): 5.5 cents compared to the 5.45 cents average estimate based on three analysts.Retail fuel volume - chain (Million gal): 1,277.60 Mgal versus 1,260.23 Mgal estimated by three analysts on average.Retail fuel margin (cpg): 35.1 cents compared to the 31 cents average estimate based on three analysts.Retail fuel volume - per store (K gal SSS): 242.60 Kgal versus the two-analyst average estimate of 240.99 Kgal.Retail fuel volume - per store (K gal APSM): 242.40 Kgal versus the two-analyst average estimate of 242.98 Kgal.Store count at end of period: 1,806 compared to the 1,807 average estimate based on two analysts.Fuel Contribution - Total retail fuel contribution: $448.9 million versus $391.27 million estimated by two analysts on average.Merchandise unit margin (%): 20.1% versus 20.2% estimated by two analysts on average.Operating Revenues- Petroleum product sales: $5.55 billion compared to the $4.77 billion average estimate based on four analysts. The reported number represents a change of +44.1% year over year.Operating Revenues- Merchandise Sales: $1.13 billion compared to the $1.14 billion average estimate based on four analysts. The reported number represents a change of +3.6% year over year.Operating Revenues- Other operating revenues: $126 million compared to the $58.17 million average estimate based on four analysts. The reported number represents a change of +105.9% year over year.View all Key Company Metrics for Murphy USA here>>>

Shares of Murphy USA have returned +2.4% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

EL DORADO, Ark.--(BUSINESS WIRE)--Murphy USA Inc. (NYSE: MUSA), a leading marketer of retail motor fuel products and convenience merchandise, today announced financial results for the three and six months ended June 30, 2026.

"Murphy USA delivered another quarter of strong financial and operational performance, demonstrating the earnings power and durability of our low-cost, high-volume business model," said President and CEO Mindy West.

Share Key Highlights:

Net income was $209.1 million, or $11.27 per diluted share, in Q2 2026 compared to net income of $145.6 million, or $7.36 per diluted share, in Q2 2025. Total fuel contribution for Q2 2026 was 40.6 cpg, compared to 32.0 cpg in Q2 2025. Total retail gallons increased 3.9%, and volumes on a same store sales ("SSS") basis increased 0.5%, in Q2 2026 compared to Q2 2025. Merchandise contribution dollars for Q2 2026 increased 4.0% to $227.4 million on average unit margins of 20.1%, compared to Q2 2025 contribution dollars of $218.7 million on unit margins of 20.0%. During Q2 2026, the Company repurchased approximately 143.1 thousand common shares for $76.8 million at an average price of $536.60 per share. The Company paid a quarterly cash dividend of $0.64 per share, or $2.56 per share on an annualized basis, on June 1, 2026, a 28.0% year-over-year increase from June of 2025, for a total cash payment of $11.8 million. In May 2026, the Company issued $500 million of Senior Notes due 2034 and used the majority of the net proceeds to retire its $300 million Senior Notes due 2027 and pay down outstanding amounts on its revolver. "Murphy USA delivered another quarter of strong financial and operational performance, demonstrating the earnings power and durability of our low-cost, high-volume business model," said President and CEO Mindy West. "Retail fuel margins were reflective of persistent volatility throughout the second quarter, as the Company delivered year-over-year and sequential improvement in both same-store and total fuel volumes, which were up 0.5% and 3.9%, respectively. Fuel results, together with merchandise contribution growth and continued expense discipline, drove meaningful growth in earnings and Adjusted EBITDA during the quarter. Given strong year-to-date results, while we remain in line with most of our guided performance metrics, market conditions remain supportive of healthy retail margins and suggest the business is on pace to deliver significantly higher Net Income and Adjusted EBITDA in 2026. If we assume second half all-in fuel margins average 35 cents per gallon, versus 37.9 cents per gallon in the first half, we expect the business to deliver Net Income of approximately $636 million and Adjusted EBITDA of approximately $1.25 billion.”

Consolidated Results

Three Months Ended

June 30,

Six Months Ended

June 30,

Key Operating Metrics

2026

2025

2026

2025

Net income (loss) ($ Millions)

$

209.1

$

145.6

$

345.4

$

198.8

Earnings per share (diluted)

$

11.27

$

7.36

$

18.54

$

9.95

Adjusted EBITDA ($ Millions)

$

377.3

$

286.0

$

655.2

$

443.4

Net Income and Adjusted EBITDA for Q2 2026 significantly outperformed the prior-year quarter. Contribution for both fuel and merchandise experienced growth in the current year quarter, driven by increased total fuel contribution margins, higher total fuel volumes and improved merchandise sales and unit margins. This strong performance was partially offset by increased store and other operating expenses including payment fees, higher income taxes, increased general and administrative expenses, greater depreciation and amortization and higher interest expense. The increased retail fuel prices in Q2 2026 led to a significant increase in payment fees that accounted for two-thirds of the increase in operating expenses for the quarter.

Fuel

Three Months Ended

June 30,

Six Months Ended

June 30,

Key Operating Metrics

2026

2025

2026

2025

Total retail fuel contribution ($ Millions)

$

448.9

$

359.1

$

741.9

$

626.8

Total fuel supply contribution ($ Millions)

(54.9

)

(25.9

)

(15.9

)

(41.2

)

RINs (included in Other operating revenues on Consolidated Income Statement) ($ Millions)

124.8

59.8

196.7

94.7

Total fuel contribution ($ Millions)

$

518.8

$

393.0

$

922.7

$

680.3

Retail fuel volume - chain (Million gal)

1,277.6

1,229.3

2,432.1

2,360.5

Retail fuel volume - (K gal APSM)1,3

242.4

241.6

230.8

231.4

Retail fuel volume - (K gal SSS)2,3

242.6

239.3

231.1

229.7

Total fuel contribution (cpg)

40.6

32.0

37.9

28.8

Retail fuel margin (cpg)

35.1

29.2

30.5

26.6

Fuel supply including RINs contribution (cpg)

5.5

2.8

7.4

2.2

Total fuel contribution dollars of $518.8 million increased $125.8 million, or 32.0%, in Q2 2026 compared to Q2 2025 primarily due to higher total fuel contribution margin and higher retail fuel volumes. Retail fuel contribution dollars increased $89.8 million, or 25.0%, to $448.9 million compared to Q2 2025 driven by higher retail fuel margins and increased volumes sold. Retail fuel margins were 35.1 cpg in Q2 2026, a 20.2% increase compared to the prior-year quarter, and overall retail fuel volumes were 3.9% higher. Fuel supply contribution including RINs increased $36.0 million compared to Q2 2025, primarily due to the impact of market-driven pricing and the timing of inventory activity during the period.

Merchandise

Three Months Ended

June 30,

Six Months Ended

June 30,

Key Operating Metrics

2026

2025

2026

2025

Total merchandise contribution ($ Millions)

$

227.4

$

218.7

$

437.6

$

414.6

Total merchandise sales ($ Millions)

$

1,132.1

$

1,092.4

$

2,181.3

$

2,091.8

Total merchandise sales ($K SSS)1,2,3

$

212.0

$

210.5

$

204.4

$

201.5

Merchandise unit margin (%)

20.1

%

20.0

%

20.1

%

19.8

%

Nicotine contribution ($K SSS)1,2,3

$

20.6

$

20.0

$

20.4

$

19.3

Non-nicotine contribution ($K SSS)1,2,3

$

22.7

$

22.8

$

21.2

$

21.3

Total merchandise contribution ($K SSS)1,2,3

$

43.3

$

42.8

$

41.6

$

40.6

Total merchandise contribution increased $8.7 million, or 4.0%, to $227.4 million in Q2 2026 compared to the prior-year quarter, driven by higher merchandise sales volume and improved unit margins. Total nicotine contribution dollars increased 6.1% and non-nicotine contribution dollars increased 2.9% in Q2 2026 compared to Q2 2025. Total merchandise contribution increased 2.2% on a SSS basis in Q2 2026 compared to the prior-year quarter.

Other Areas

Three Months Ended

June 30,

Six Months Ended

June 30,

Key Operating Metrics

2026

2025

2026

2025

Total store and other operating expenses ($ Millions)

$

308.7

$

275.2

$

588.5

$

541.3

Store OPEX excluding payment fees and rent ($K APSM)

$

36.5

$

36.1

$

35.9

$

35.6

Total SG&A cost ($ Millions)

$

60.5

$

50.9

$

117.1

$

111.0

Total store and other operating expenses were $33.5 million higher in Q2 2026 versus Q2 2025 mainly due to increases in payment fees and higher employee related expenses at existing stores combined with increases in net new store operating expenses. Store OPEX excluding payment fees and rent on an APSM basis were 1.1% higher versus Q2 2025 primarily attributable to increased employee related expenses tied to the new store growth.

Total SG&A costs for Q2 2026 were $9.6 million higher than Q2 2025, primarily due to higher employee-related expenses and incentive accruals.

Store Openings The tables below reflect changes in our store portfolio in Q2 2026:

  Net Change in Q2 2026

Murphy
USA / Express

QuickChek

Total

New-to-industry ("NTI")

5

1

6

Closed

(1

)

(2

)

(3

)

Net change

4

(1

)

3

Net Change YTD in 2026

NTI

11

1

12

Closed

(1

)

(5

)

(6

)

Net change

10

(4

)

6

Raze-and-rebuilds reopened in Q2*

5

—

5

Raze-and-rebuilds reopened YTD*

6

—

6

Store count at June 30, 2026*

1,659

147

1,806

Under Construction at End of Q2

NTI

26

6

32

Raze-and-rebuilds*

4

—

4

Total under construction at end of Q2

30

6

36

*Store counts include raze-and-rebuild stores

Financial Resources

As of June 30,

Key Financial Metrics

2026

2025

Cash and cash equivalents ($ Millions)

$

175.4

$

54.1

Long-term debt, including finance lease obligations ($ Millions)

$

2,167.0

$

2,066.7

As of June 30, 2026, cash balances totaled $175.4 million. Long-term debt consisted of approximately $497.6 million in carrying value of 4.75% senior notes due 2029, $496.5 million in carrying value of 3.75% senior notes due 2031, $493.3 million in carrying value of 5.875% senior notes due 2034, and $580.6 million of term debt due 2032, combined with approximately $99.0 million in long-term finance leases. In addition, the revolving credit facility due 2030 was undrawn at quarter end.

During the quarter, we issued $500 million aggregate principal amount of 5.875% Senior Notes due 2034 (the "2034 Notes") pursuant to an indenture dated as of May 27, 2026 and retired $300 million 5.625% Senior Notes due 2027.

Three Months Ended

June 30,

Six Months Ended

June 30,

Key Financial Metric

2026

2025

2026

2025

Average shares outstanding (diluted) (in thousands)

18,552

19,765

18,628

19,985

At June 30, 2026, the Company had common shares outstanding of 18,380,347. Common shares repurchased during the quarter were approximately 143.1 thousand shares for $76.8 million. As of June 30, 2026, approximately $145.1 million remained available under the existing $1.5 billion 2023 authorization. In addition, the Company had $2.0 billion of capacity available under its previously announced share repurchase 2025 authorization, which becomes effective upon completion of the 2023 authorization and expires on December 31, 2030.

The effective income tax rate was approximately 24.7% for Q2 2026 compared to 24.4% in Q2 2025.

The Company paid a quarterly cash dividend on June 1, 2026 of $0.64 per share, or $2.56 per share on an annualized basis, a 28.0% year-over-year increase from June of 2025, for a total cash payment of $11.8 million. Year-to-date, the Company has paid $23.5 million in dividends, or $1.27 per share.

2026 Guidance Update Concurrent with the earnings release, the Company is also providing a full-year guidance update (original guidance noted below along with current expectation for full-year results).

  2026 Original Guidance Range

Current Expectation

Organic Growth

New Stores

45 to 55

Unchanged

Raze-and-Rebuilds

Up to 30

Low-end

Fuel Contribution

Retail fuel volume per store (K gallons APSM)

233 to 237

Unchanged

Retail fuel volume per store (same-store YoY %)

(3.0)% to (1.0)%

Unchanged

Store Profitability

Merchandise contribution ($ Millions)

$890 to $900

Low-end

Store OPEX excluding payment fees and rent ($K, APSM)

$37.0 to $38.0

Low-end

Corporate Costs

SG&A ($ Millions)

$240 to $250

Low-end

Effective Tax Rate

23% to 25%

Higher-end

Capital Allocation

Capital expenditures ($ Millions)

$475 to $525

Higher-end

Now that we have completed the first half of 2026, we have a higher level of confidence in our guidance metrics in light of the changing conditions we have experienced in relation to our original budget.

For fuel volume, we still expect to finish 2026 within the original range of our volume guidance for the gallons per store month metric and the same-store percentage metric. The ultimate outcome within the ranges is highly dependent on the macro fuel environment over that period, therefore no estimate is provided within the ranges. We expect full-year merchandise margin to be towards the low end of our guided range. On full-year store OPEX excluding payment fees and rent, we expect to be on the low-end of the guided range. SG&A costs are trending lower due to lower professional fees than planned partially offset by higher incentive expenses, therefore, we expect to be on the low-end of the original range. Income taxes should land towards the higher end of the range. Lastly, our capital expenditures remain on track to hit the high-end of our original guided range. NTI additions will be closer to 45 new stores in the calendar year, with the higher end still attainable through any small tuck-in purchases we might undertake. We continue to prioritize organic growth with our capital spending, ensuring our new store team is working diligently to deliver 2026 new stores, pulling forward construction of new stores scheduled to open in 2027, increasing investment in our land pipeline, and undertaking proactive maintenance activities across the network. As such, we expect to complete 10 raze and rebuilds this year. * * * * *

Earnings Call Information

The Company will issue management commentary today, August 5, 2026 at approximately 3:30 p.m. Central Time and will host a webcasted question and answer session on August 6, 2026 at 10:00 a.m. Central Time to discuss second quarter 2026 results. Both the management commentary and live Q&A session can be accessed via the Investor Relations section of the Murphy USA website at https://ir.corporate.murphyusa.com. If you are unable to attend the Q&A session via webcast, the conference call number is 1 (833) 461-5787 and the conference ID number is 407414209. The earnings and investor related materials, including reconciliations of any non-GAAP financial measures to GAAP financial measures and any other applicable disclosures, will be available on that same day in the investor section of the Murphy USA website (https://ir.corporate.murphyusa.com). Approximately one hour after the conclusion of the live session, the webcast will be available for replay. Shortly thereafter, a transcript will be available.

Forward-Looking Statements

This news release contains certain statements or may suggest “forward-looking” information (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including, but not limited to our 2026 financial and operating performance, anticipated store openings and associated capital expenditures, fuel margins, merchandise margins, sales of RINs, trends in our operations, dividends, and share repurchases. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual future results may differ materially from historical results or current expectations depending upon factors including, but not limited to: our ability to continue to maintain a good business relationship with Walmart; successful execution of our growth strategy, including our ability to realize the anticipated benefits from such growth initiatives, and the timely completion of construction associated with our newly planned stores which may be impacted by the financial health of third parties; our ability to effectively manage our inventory, manage disruptions in our supply chain and our ability to control costs; geopolitical events, such as evolving trade policies and the imposition of reciprocal tariffs and the conflicts in the Middle East, that impact the supply and demand and price of crude oil; the impact of severe weather events, such as hurricanes, floods and earthquakes; the impact of a global health pandemic and any governmental response thereto; the impact of any systems failures, cybersecurity and/or security breaches of the company or its vendor partners, including any security breach that results in theft, transfer or unauthorized disclosure of customer, employee or company information or our compliance with information security and privacy laws and regulations in the event of such an incident; successful execution of our information technology strategy; reduced demand for our products due to the implementation of more stringent fuel economy and greenhouse gas reduction requirements, or increasingly widespread adoption of electric vehicle technology; future nicotine or e-cigarette legislation and any other efforts that make purchasing nicotine products more costly or difficult could hurt our revenues and impact gross margins; our ability to successfully expand our food and beverage offerings; efficient and proper allocation of our capital resources, including the timing, declaration, amount and payment of any future dividends or levels of the Company's share repurchases, or management of operating cash; the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, and general economic conditions; compliance with debt covenants; availability and cost of credit; and changes in interest rates. Our SEC reports, including our most recent annual Report on Form 10-K and quarterly report on Form 10-Q, contain other information on these and other factors that could affect our financial results and cause actual results to differ materially from any forward-looking information we may provide. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Murphy USA Inc.

Consolidated Statements of Income

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(Millions of dollars, except share and per share amounts)

2026

2025

2026

2025

Operating Revenues

Petroleum product sales1

$

5,548.0

$

3,851.4

$

9,244.8

$

7,341.2

Merchandise sales

1,132.1

1,092.4

2,181.3

2,091.8

Other operating revenues

126.0

61.2

199.3

97.4

Total operating revenues

6,806.1

5,005.0

11,625.4

9,530.4

Operating Expenses

Petroleum product cost of goods sold1

5,154.9

3,519.2

8,520.9

6,757.5

Merchandise cost of goods sold

904.7

873.7

1,743.7

1,677.2

Store and other operating expenses

308.7

275.2

588.5

541.3

Depreciation and amortization

72.2

66.0

144.3

134.2

Selling, general and administrative

60.5

50.9

117.1

111.0

Accretion of asset retirement obligations

0.9

0.8

1.8

1.7

Total operating expenses

6,501.9

4,785.8

11,116.3

9,222.9

Gain (loss) on sale of assets

0.7

—

1.0

(0.3

)

Income (loss) from operations

304.9

219.2

510.1

307.2

Other income (expense)

Investment income (expense)

1.0

0.1

1.3

—

Interest expense

(29.3

)

(27.8

)

(58.3

)

(53.2

)

Other nonoperating income (expense)

1.0

1.0

0.7

0.4

Total other income (expense)

(27.3

)

(26.7

)

(56.3

)

(52.8

)

Income before income taxes

277.6

192.5

453.8

254.4

Income tax expense (benefit)

68.5

46.9

108.4

55.6

Net Income

$

209.1

$

145.6

$

345.4

$

198.8

Basic and Diluted Earnings Per Common Share:

Basic

$

11.34

$

7.44

$

18.69

$

10.07

Diluted

$

11.27

$

7.36

$

18.54

$

9.95

Weighted-average Common shares outstanding

(in thousands):

Basic

18,438

19,546

18,478

19,738

Diluted

18,552

19,765

18,628

19,985

Supplemental information:

1Includes excise taxes of:

$

604.4

$

599.5

$

1,169.4

$

1,151.3

Murphy USA Inc.

Segment Operating Results

(Unaudited)

(Millions of dollars, except revenue per same store sales (in thousands) and store counts)

Three Months Ended

June 30,

Six Months Ended

June 30,

Marketing Segment

2026

2025

2026

2025

Operating Revenues

Petroleum product sales

$

5,548.0

$

3,851.4

$

9,244.8

$

7,341.2

Merchandise sales

1,132.1

1,092.4

2,181.3

2,091.8

Other operating revenues

125.9

61.2

199.2

97.3

Total operating revenues

6,806.0

5,005.0

11,625.3

9,530.3

Operating expenses

Petroleum products cost of goods sold

5,154.9

3,519.2

8,520.9

6,757.5

Merchandise cost of goods sold

904.7

873.7

1,743.7

1,677.2

Store and other operating expenses

308.6

275.2

588.4

541.2

Depreciation and amortization

65.8

59.6

131.7

121.1

Selling, general and administrative

60.5

50.9

117.1

111.0

Accretion of asset retirement obligations

0.9

0.8

1.8

1.7

Total operating expenses

6,495.4

4,779.4

11,103.6

9,209.7

Gain (loss) on sale of assets

0.7

—

1.0

(0.3

)

Income (loss) from operations

311.3

225.6

522.7

320.3

Other income (expense)

Interest expense

(1.9

)

(2.0

)

(3.9

)

(3.9

)

Total other income (expense)

(1.9

)

(2.0

)

(3.9

)

(3.9

)

Income (loss) before income taxes

309.4

223.6

518.8

316.4

Income tax expense (benefit)

76.6

55.7

124.1

69.4

Net income (loss) from operations

$

232.8

$

167.9

$

394.7

$

247.0

Total nicotine sales revenue same store sales1,2

$

135.9

$

133.1

$

132.1

$

128.1

Total non-nicotine sales revenue same store sales1,2

76.1

77.4

72.3

73.4

Total merchandise sales revenue same store sales1,2

$

212.0

$

210.5

$

204.4

$

201.5

12025 amounts not revised for 2026 raze-and-rebuild activity

2Includes store-level discounts for redemptions and excludes changes in value of unredeemed points associated with our loyalty program(s)

Store count at end of period

1,806

1,766

1,806

1,766

Total store months during the period

5,388

5,229

10,780

10,488

Same store sales information compared to APSM metrics

  Variance from prior year period

Three months ended

Six months ended

June 30, 2026

June 30, 2026

SSS1

APSM2

SSS1

APSM2

Retail fuel volume per month

0.5

%

0.3

%

(0.1

%)

(0.2

%)

Merchandise sales

1.0

%

0.6

%

1.9

%

1.5

%

Nicotine sales

2.4

%

1.9

%

3.6

%

3.0

%

Non-nicotine sales

(1.4

)%

(1.5

)%

(1.2

%)

(1.1

%)

Merchandise margin

2.2

%

0.9

%

3.5

%

2.7

%

Nicotine margin

4.6

%

3.0

%

7.4

%

5.8

%

Non-nicotine margin

0.2

%

(0.2

)%

—

%

—

%

Notes

Average Per Store Month ("APSM") metric includes all stores open through the date of the calculation, including stores acquired during the period.

Same store sales ("SSS") metric includes aggregated individual store results for all stores open throughout both periods presented. For all periods presented, the store must have been open for the entire calendar year to be included in the comparison. Remodeled stores that remained open or were closed for just a very brief time (less than a month) during the period being compared remain in the same store sales calculation. If a store is replaced either at the same location (raze-and-rebuild) or relocated to a new location, it will be excluded from the calculation during the period it is out of service. Newly constructed stores do not enter the calculation until they are open for each full calendar year for the periods being compared (open by January 1, 2025 for the stores being compared in the 2026 versus 2025 comparison). Acquired stores are not included in the calculation of same store sales for the first 12 months after the acquisition. When prior period same store sales volumes or sales are presented, they have not been revised for current year activity for raze-and-rebuilds and asset dispositions.

Murphy USA Inc.

Consolidated Balance Sheets

(Millions of dollars, except share amounts)

June 30,
2026

December 31, 2025

(unaudited)

Assets

Current assets

Cash and cash equivalents

$

175.4

$

28.9

Accounts receivable—trade, less allowance for doubtful

accounts of $0.4 and $0.3 at 2026 and 2025, respectively

379.2

276.2

Inventories, at lower of cost or market

417.4

413.0

Prepaid expenses and other current assets

35.9

29.7

Total current assets

1,007.9

747.8

Property, plant and equipment, at cost less accumulated depreciation and amortization of $2,313.4 and $2,173.5 at 2026 and 2025, respectively

3,036.9

2,962.8

Operating lease right of use assets, net

539.1

526.3

Intangible assets, net of amortization

139.2

139.3

Goodwill

328.0

328.0

Other assets

33.9

21.6

Total assets

$

5,085.0

$

4,725.8

Liabilities and Stockholders' Equity

Current liabilities

Current maturities of long-term debt

$

19.1

$

19.0

Trade accounts payable and accrued liabilities

1,015.0

865.2

Income taxes payable

55.6

44.9

Total current liabilities

1,089.7

929.1

Long-term debt, including capitalized lease obligations

2,167.0

2,163.6

Deferred income taxes

404.2

388.5

Asset retirement obligations

54.4

52.5

Non-current operating lease liabilities

549.4

534.6

Deferred credits and other liabilities

37.6

34.0

Total liabilities

4,302.3

4,102.3

Stockholders' Equity

Preferred Stock, par $0.01 (authorized 20,000,000 shares,

none outstanding)

—

—

Common Stock, par $0.01 (authorized 200,000,000 shares,

46,767,164 shares issued at 2026 and 2025 respectively

0.5

0.5

Treasury stock (28,386,817 and 28,201,581 shares held at

2026 and 2025, respectively)

(4,162.1

)

(4,031.7

)

Additional paid in capital (APIC)

450.3

482.4

Retained earnings

4,494.0

4,172.3

Total stockholders' equity

782.7

623.5

Total liabilities and stockholders' equity

$

5,085.0

$

4,725.8

Murphy USA Inc.

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(Millions of dollars)

2026

2025

2026

2025

Operating Activities

Net income

$

209.1

$

145.6

$

345.4

$

198.8

Adjustments to reconcile net income (loss) to net cash provided (required) by operating activities

Depreciation and amortization

72.2

66.0

144.3

134.2

Deferred and noncurrent income tax charges (benefits)

6.4

1.3

15.7

(0.1

)

Restructuring expense, net of cash paid

(0.9

)

—

(1.1

)

—

Accretion of asset retirement obligations

0.9

0.8

1.8

1.7

(Gains) losses from sale of assets

(0.7

)

—

(1.0

)

0.3

Net (increase) decrease in noncash operating working capital

(50.7

)

36.8

44.4

37.1

Other operating activities - net

(1.3

)

4.6

5.5

11.6

Net cash provided (required) by operating activities

235.0

255.1

555.0

383.6

Investing Activities

Property additions

(111.7

)

(118.0

)

(210.0

)

(205.8

)

Proceeds from sale of assets

0.5

1.5

0.7

1.8

Other investing activities - net

9.9

(0.1

)

9.5

(0.3

)

Net cash provided (required) by investing activities

(101.3

)

(116.6

)

(199.8

)

(204.3

)

Financing Activities

Purchase of treasury stock

(82.3

)

(213.8

)

(152.8

)

(363.8

)

Dividends paid

(11.8

)

(9.8

)

(23.5

)

(19.6

)

Borrowings of debt

727.0

1,112.3

1,317.0

1,782.3

Repayments of debt

(696.8

)

(1,013.0

)

(1,314.6

)

(1,543.0

)

Debt issuance costs

(1.9

)

(8.9

)

(1.9

)

(8.9

)

Amounts related to share-based compensation

(11.1

)

(0.6

)

(32.9

)

(19.2

)

Net cash provided (required) by financing activities

(76.9

)

(133.8

)

(208.7

)

(172.2

)

Net increase (decrease) in cash, cash equivalents and restricted cash

56.8

4.7

146.5

7.1

Cash, cash equivalents and restricted cash at beginning of period

118.6

49.4

28.9

47.0

Cash, cash equivalents and restricted cash at end of period

$

175.4

$

54.1

$

175.4

$

54.1

Supplemental Disclosure Regarding Non-GAAP Financial Information

The following table reconciles EBITDA and Adjusted EBITDA to Net Income for the three and six months ended June 30, 2026 and 2025. EBITDA means net income (loss) plus net interest expense, plus income tax expense, depreciation and amortization, and Adjusted EBITDA adds back (i) other non-cash items (e.g., impairment of properties and accretion of asset retirement obligations) and (ii) other items that management does not consider to be meaningful in assessing our operating performance (e.g., (income) from discontinued operations, net settlement proceeds, (gain) loss on sale of assets, loss on early debt extinguishment, transaction and integration costs related to acquisitions, restructuring expenses, and other non-operating (income) expense). EBITDA and Adjusted EBITDA are not measures that are prepared in accordance with U.S. generally accepted accounting principles (GAAP).

We use Adjusted EBITDA in our operational and financial decision-making, believing that the measure is useful to eliminate certain items in order to focus on what we deem to be a more reliable indicator of ongoing operating performance and our ability to generate cash flow from operations. Adjusted EBITDA is also used by many of our investors, research analysts, investment bankers, and lenders to assess our operating performance. We believe that the presentation of Adjusted EBITDA provides useful information to investors because it allows understanding of a key measure that we evaluate internally when making operating and strategic decisions, preparing our annual plan, and evaluating our overall performance. However, non-GAAP measures are not a substitute for GAAP disclosures, and EBITDA and Adjusted EBITDA may be prepared differently by us than by other companies using similarly titled non-GAAP measures.

The reconciliation of net income (loss) to EBITDA and Adjusted EBITDA is as follows:

Three Months Ended

June 30,

Six Months Ended

June 30,

(Millions of dollars)

2026

2025

2026

2025

Net income

$

209.1

$

145.6

$

345.4

$

198.8

Income tax expense (benefit)

68.5

46.9

108.4

55.6

Interest expense, net of investment income

28.3

27.7

57.0

53.2

Depreciation and amortization

72.2

66.0

144.3

134.2

EBITDA

$

378.1

$

286.2

$

655.1

$

441.8

Accretion of asset retirement obligations

0.9

0.8

1.8

1.7

(Gain) loss on sale of assets

(0.7

)

—

(1.0

)

0.3

Other nonoperating (income) expense

(1.0

)

(1.0

)

(0.7

)

(0.4

)

Adjusted EBITDA

$

377.3

$

286.0

$

655.2

$

443.4

Required Non-GAAP Reconciliation An itemized reconciliation of Adjusted EBITDA to Net Income for the full year 2026 outlook, is as follows:

  Calendar Year 2026 Outlook

(Millions of dollars)

Net Income

$

636

Income taxes

$

203

Interest expense, net of investment income

$

115

Depreciation and amortization

$

295

Other operating and nonoperating, net

$

1

Adjusted EBITDA

$

1,250

As noted in the earnings release quote, using all-in fuel margins of 35 cpg for the second half of 2026, combined with the actual results from the first half, management would expect the business to generate Net Income of $636 million , which would translate to expected Adjusted EBITDA of approximately $1.25 billion.

More News From Murphy USA Inc.

Key Takeaways MUSA is set to report Q2 2026 earnings on Aug. 5, with EPS estimated at $9.40 and revenues at $5.9 billion.MUSA earnings beat estimates in each of the past four quarters, with an average surprise of 16.56%.MUSA's higher merchandise sales may lift revenues, while rising operating costs could pressure earnings. Murphy USA Inc. (MUSA - Free Report) is set to report second-quarter 2026 earnings on Aug. 5. The Zacks Consensus Estimate for earnings is pegged at $9.40 per share and the same for revenues is pinned at $5.90 billion.

Let us delve into the factors that might have influenced MUSA’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of MUSA’s Q1 Earnings & Surprise HistoryIn the last reported quarter, the motor fuel retailer posted earnings of $7.28 per share, beating the Zacks Consensus Estimate of $5.37 by 35.6%. This strong performance was primarily driven by a more favorable refined products environment and solid execution, with total fuel contribution of 35 cents per gallon and total retail fuel volumes increasing 2.1% year over year. Moreover, total operating revenues beat the consensus estimate of $4.7 billion by 3.9%.

MUSA’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 16.56%.

This is depicted in the graph below: 

Trend in MUSA’s Estimate RevisionThe Zacks Consensus Estimate for second-quarter 2026 earnings has remained unchanged in the past seven days. The estimated figure indicates a 27.72% year-over-year increase. Additionally, the Zacks Consensus Estimate for revenues implies a 17.91% increase from the year-ago period.

Factors to Consider Ahead of MUSA’s Q2 ReleaseMurphy USA operates a chain of retail fuel stations and convenience stores across the United States. The company generates most of its revenues by selling fuel, tobacco products, snacks, beverages and other everyday convenience items.

MUSA’s total revenues are likely to have increased in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is pegged above the year-ago quarter's level. This increase is expected to have been driven by higher merchandise sales, with merchandise revenues projected to rise 3.7% year over year.

On the other hand, the increase in MUSA's costs is expected to have dented its bottom line. MUSA’s total operating expenses are projected to reach $4.81 billion in the second quarter, which is 0.6% up from the year-ago quarter’s level. Based on our model estimates, we expect the company's cost base to have increased year over year, with Merchandise Cost of Goods Sold projected to rise 3.9%, Selling, General and Administrative expenses 20.9%, Store and Other Operating Expenses 4.6%, and Depreciation and Amortization 9.2%.

What Does Our Model Say?The proven Zacks model does not conclusively show an earnings beat for Murphy USA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -2.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MUSA currently carries a Zacks Rank #3.

Stocks to ConsiderHere are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat.

Ryman Hospitality Properties (RHP - Free Report) has an Earnings ESP of +1.26% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 6, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ryman Hospitality Properties is a real estate investment trust that owns a large group of convention-oriented hotels and entertainment assets. This includes the Grand Ole Opry, generating revenues from hospitality, entertainment and related businesses. Ryman Hospitality has a trailing four-quarter average earnings surprise of 6.44%.

Somnigroup International Inc. (SGI - Free Report) has an Earnings ESP of +2.02% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 6, 2026.

Somnigroup is a global bedding company that designs, manufactures and sells mattresses, adjustable bases and sleep-related products through a portfolio of well-known brands. The company has a trailing four-quarter average earnings surprise of 4.8%.

Sweetgreen (SG - Free Report) has an Earnings ESP of +11.54% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 6, 2026.

Sweetgreen is a fast-casual restaurant chain that serves customizable salads, warm bowls and protein plates. The company has a strong focus on digital ordering and fresh, locally sourced ingredients. Sweetgreen is valued at approximately $755.74 million.

Posted by Defense World Staff on Jul 23rd, 2026

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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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.

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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.

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.

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.

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.

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Investors might lose out on top gainers in an attempt to avoid the steep prices.

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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%.

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. 

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.

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.

KLA Corp. (NASDAQ:KLAC) Benzinga Edge Quality Score: 97.90

Argan Corp. (NASDAQ:AGX) Benzinga Edge Quality Score: 96.09

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

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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.

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Copyright 2026 Zacks Investment Research 101 N Wacker Drive, Floor 15, Chicago, IL 60606

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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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.

Click here to sign up for a free trial to the Research Wizard today.

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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

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.

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.

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.

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%.