Track market-moving stories before they get noisy

SAN ANTONIO--(BUSINESS WIRE)--Valero Energy Corporation (NYSE: VLO) announced today that it will host a conference call on Thursday, October 22, 2026, at 10:00 a.m. ET to discuss its financial and operational results for the third quarter of 2026. The earnings release will be issued earlier that morning.A live webcast of the conference call will be available on Valero's Investor Relations website at investorvalero.com.About ValeroValero Energy Corporation, through its subsidiaries (collectively,.

Key Takeaways VLO, PBF, FET and DCTH qualified as low-beta stocks amid heightened market volatility.VLO gains sourcing flexibility from diverse low-cost crude, while PBF benefits from high refinery utilization.FET targets debt reduction and growth, while DCTH's repeat-treatment model may support recurring revenue. Uncertainty and fears continue to dominate the stock market as oil prices remain high, since the United States and Iran recently exchanged strikes. With the market expected to remain highly volatile, it is advisable for investors to increase their allocation to low-beta stocks. Companies that seem to be good bets now are Valero Energy Corporation (VLO - Free Report) , PBF Energy (PBF - Free Report) , Forum Energy Technologies Inc (FET - Free Report) and Delcath Systems, Inc. (DCTH - Free Report) .

What Does Beta of a Stock Measure?Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.

If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.

For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.

Screening Criteria Using Research Wizard:We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.

Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.

Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.

Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.

Zacks Rank Equal to 1 (Strong Buy):Zacks Rank #1 stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are four of the 24 stocks that qualified:

Valero Energy

Regarding the company’s access to diverse crude feedstocks, Valero has an advantage because its Gulf Coast refineries can buy crude oil from many low-cost sources, including the United States, Canada and Venezuela. This gives the company more flexibility to purchase cheaper oil, which helps keep refining costs low and can boost profits when competitors have fewer sourcing options.

PBF Energy

PBF Energy is among the leading refiners in the United States. High refinery utilization amid resilient U.S. demand is expected to continue to offset the negative impacts of elevated input costs, driven by high oil prices. This should boost PBF’s bottom line.

Forum Energy Technologies

Forum Energy is well-positioned to capitalize on growing global energy demand, as it is a well-known provider of equipment and solutions to companies for finding and producing oil and natural gas. FET is strongly focused on debt reduction and strategic investments, while allocating a significant proportion of its free cash flow to strengthen its balance sheet and support long-term growth initiatives.

Delcath Systems

HEPZATO’s repeat-treatment model can support revenue across multiple quarters, as patients may receive treatments for up to three quarters. Growing commercial use in metastatic uveal melanoma is also generating enough funds to support expansion into additional liver-dominant cancers. Together, recurring treatment volumes and self-funded pipeline investment could strengthen Delcath’s long-term growth prospects.

On CNBC’s “Halftime Report Final Trades,” Stephen Weiss is the Chief Investment Officer and Managing Partner of Short Hills Capital Partners picked Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG).

Lending support to his choice, Rosenblatt analyst Scott Devitt assumed coverage of Alphabet on Aug. 20 with a Buy rating and set a price target of $410.

Jim Lebenthal, partner and chief market strategist at Cerity Partners, named Oracle Corporation (NYSE:ORCL) as his final trade.

Oracle will release its first-quarter fiscal year 2027 results after the closing bell on Thursday, Sept. 10. Analysts expect the company to report quarterly earnings of $1.74 per share on revenue of $19.13 billion.

Don’t forget to check out our premarket coverage here

Liz Thomas, SoFi head of investment strategy, recommended iShares Gold Trust (NYSE:IAU).

Joseph M. Terranova, senior managing director for Virtus Investment Partners, picked Valero Energy Corporation (NYSE:VLO).

Trending

Supporting his view, Wells Fargo analyst Sam Margolin maintained Valero Energy with an Overweight rating on Tuesday and raised the price target from $356 to $389.

Price Action Alphabet shares gained 0.6% to close at $337.12 on Wednesday. Oracle shares rose 3.1% to settle at $145.75 during the session. iShares Gold Trust gained 1.5% on Wednesday. Valero Energy shares rose 1.1% to settle at $366.09. Read Next

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Rob Thummel discusses the "huge" impact the U.S.-Iran war has had on the global energy trade as crude oil, diesel, and jet fuel supplies deplete. Companies like Valero Energy (VLO), Phillips 66 (PSX), and Marathon Petroleum (MPC) are seeing a surge in free cash flow.

A strong stock as of late has been Valero Energy (VLO - Free Report) . Shares have been marching higher, with the stock up 16.7% over the past month. The stock hit a new 52-week high of $362.79 in the previous session. Valero Energy has gained 120.5% since the start of the year compared to the 30.7% move for the Zacks Oils-Energy sector and the 116.2% return for the Zacks Oil and Gas - Refining and Marketing industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 30, 2026, Valero Energy reported EPS of $12.54 versus consensus estimate of $9.87.

For the current fiscal year, Valero Energy is expected to post earnings of $40.7 per share on $146.63 in revenues. This represents a 283.6% change in EPS on a 19.52% change in revenues. For the next fiscal year, the company is expected to earn $29.53 per share on $137.83 in revenues. This represents a year-over-year change of -27.44% and -6%, respectively.

Valuation MetricsValero Energy may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Valero Energy has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 8.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 8.8X. On a trailing cash flow basis, the stock currently trades at 16.6X versus its peer group's average of 11.3X. Additionally, the stock has a PEG ratio of 0.41. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Valero Energy currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Valero Energy fits the bill. Thus, it seems as though Valero Energy shares could still be poised for more gains ahead.

How Does VLO Stack Up to the Competition?Shares of VLO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Marathon Petroleum Corporation (MPC - Free Report) . MPC has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.

Earnings were strong last quarter. Marathon Petroleum Corporation beat our consensus estimate by 22.11%, and for the current fiscal year, MPC is expected to post earnings of $46.66 per share on revenue of $156.14 billion.

Shares of Marathon Petroleum Corporation have gained 21.6% over the past month, and currently trade at a forward P/E of 8X and a P/CF of 17.09X.

The Oil and Gas - Refining and Marketing industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VLO and MPC, even beyond their own solid fundamental situation.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Valero Energy (VLO - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Valero Energy currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if VLO is a promising momentum pick, let's examine some Momentum Style elements to see if this oil refiner holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For VLO, shares are up 1% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 0.12% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 12.61% compares favorably with the industry's 3.8% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Valero Energy have increased 37.74% over the past quarter, and have gained 131.8% in the last year. On the other hand, the S&P 500 has only moved 2.22% and 19.79%, respectively.

Investors should also take note of VLO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now VLO is averaging 2,453,463 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with VLO.

Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost VLO's consensus estimate, increasing from $29.69 to $40.70 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that VLO is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Valero Energy on your short list.

Key Takeaways Phillips 66 targets refining controllable costs of $5.50 per barrel by 2027, near its current $5.57 level.PSX's more than 200 initiatives focus on energy efficiency, simplification, reliability and capacity use.Phillips 66's Bayway, Ferndale and Wood River projects each target more than $1M in annual operating savings. Phillips 66 (PSX - Free Report) is an integrated downstream energy company with operations spanning midstream, chemicals, refining, marketing and specialties, and renewable fuels. The refiner is targeting annual refining adjusted controllable costs of about $5.50 per barrel in 2027, excluding turnaround expenses and assuming Henry Hub natural gas prices of $3 per million British thermal units. PSX is close to its objective, with second-quarter 2026 refining adjusted controllable costs at $5.57 per barrel.

Management is pursuing more than 200 refining initiatives aimed at lowering operating expenses across the system. These efforts center on energy efficiency, process simplification, reliability and stronger utilization of available processing capacity. Projects at Bayway, Ferndale and Wood River are each expected to reduce annual operating expenses by more than $1 million, supporting Phillips 66’s broader cost-reduction program.

The cost push is supported by strong refinery execution, with PSX reporting 96% crude-capacity utilization and an 86% clean-product yield in the second quarter. The company has streamlined its refining portfolio, improved yields and utilization and continued to pursue low-capital, high-return projects alongside reliability improvements. With current costs already tracking close to target levels and extensive optimization initiatives underway, Phillips 66 is well-positioned to realize its 2027 cost milestone of $5.50 per barrel.

MPC & VLO Highlight Refining Cost DisciplineBeyond Phillips 66, Marathon Petroleum Corporation (MPC - Free Report) and Valero Energy Corporation (VLO - Free Report) highlight how operating efficiency, refinery optimization and disciplined investment can strengthen downstream cost structures and margins.

Marathon Petroleum reported refining operating costs of $5.72 per barrel in the second quarter, higher than the $5.34 per barrel a year earlier, mainly reflecting lower utilization from planned Mid-Continent downtime. The company expects refining operating costs to moderate to $5.60 per barrel in the third quarter, pointing to potential improvement as operations normalize. MPC is pursuing shorter-cycle, high-return projects focused on margin enhancement and cost reduction, alongside refinery investments at Galveston Bay and Garyville scheduled through year-end 2027.

Valero Energy recorded refining operating expenses, excluding depreciation and amortization, at $4.70 per barrel of throughput in the second quarter, down from $4.91 per barrel a year earlier. The refiner processed about 2.95 million barrels per day while generating adjusted refining operating income of $16.56 per barrel, reflecting strong refinery economics alongside cost control. VLO is advancing the $230-million St. Charles Fluid Catalytic Cracking Unit optimization project, which is expected to begin operations in the third quarter of 2026 and enhance the refinery’s ability to produce higher-value products.

PSX’s Price Performance, Valuation & EstimatesPhillips 66 shares have gained 102.7% over the past year compared with the industry’s 82.7% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, PSX trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 10.96X. This is above the broader industry average of 5.38X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PSX's 2026 earnings has remained constant over the past seven days.

Image Source: Zacks Investment Research

PSX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Key Takeaways Valero Energy, PBF Energy and Forum Energy Technologies are among low-beta stocks that passed the screen.PBF Energy expects high refinery utilization and resilient U.S. demand to help offset elevated input costs.Forum Energy Technologies is prioritizing debt reduction, strategic investments and balance-sheet strength. The stock market is likely to remain volatile amid uncertainty over the re-opening of the Strait of Hormuz and the increasing U.S. economic pressure on Iran.  With fears dominating the market, it is advisable for investors to increase their allocation to low-beta stocks. Companies that seem to be good bets now are Valero Energy Corporation (VLO - Free Report) , PBF Energy (PBF - Free Report) and Forum Energy Technologies Inc (FET - Free Report) .

What Does Beta of a Stock Measure?Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.

If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.

For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.

Screening Criteria Using Research Wizard:We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.

Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.

Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.

Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.

Zacks Rank Equal to 1 (Strong Buy): Zacks Rank #1 stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are three of the 26 stocks that qualified:

Valero Energy

Regarding the company’s access to diverse crude feedstocks, Valero has an advantage because its Gulf Coast refineries can buy crude oil from many low-cost sources, including the United States, Canada and Venezuela. This gives the company more flexibility to purchase cheaper oil, which helps keep refining costs low and can boost profits when competitors have fewer sourcing options.

PBF Energy

PBF Energy is among the leading refiners in the United States. High refinery utilization amid resilient U.S. demand is expected to continue to offset the negative impacts of elevated input costs, driven by high oil prices. This should drive PBF’s bottom line.

Forum Energy Technologies

Forum Energy is well-positioned to capitalize on growing global energy demand, as it is a well-known provider of equipment and solutions to companies for finding and producing oil and natural gas. FET is strongly focused on debt reduction and strategic investments, while allocating a significant proportion of its free cash flow to strengthen its balance sheet and support long-term growth initiatives.

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 includes access to the Zacks Style Scores as well.

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 given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% 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.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Valero Energy (VLO - Free Report) Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The company is headquartered in San Antonio, TX. It was founded in 1980 and is one of the largest independent refiners and marketers of petroleum products in the United States.

VLO is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. VLO has a Growth Style Score of A, forecasting year-over-year earnings growth of 282.9% for the current fiscal year.

Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $10.93 to $40.62 per share. VLO also boasts an average earnings surprise of +26.8%.

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

Key Takeaways Valero had $7.9 billion in cash as of June-end, above its $4-$5 billion long-term target.Valero returned $3.6 billion to stockholders in the first half of 2026 through buybacks and dividends.A new $5B buyback authorization and refinery upgrades are likely to support VLO's future shareholder returns. Valero Energy Corporation (VLO - Free Report) has built a sizeable cash cushion, strengthening its capacity to reward shareholders while retaining flexibility through commodity cycles. As of June 30, 2026, Valero held $7.9 billion of cash and cash equivalents, well above management’s long-term $4-$5 billion cash target. In the first six months of 2026, VLO returned $3.6 billion to stockholders through buybacks and dividends compared with $1.3 billion in the year-ago period, while second-quarter cash returns alone totaled $2.6 billion.

The surplus cash leaves share repurchases as an important avenue for additional capital returns, especially since management sees no immediate pressure to reduce leverage further. Valero’s disciplined repurchase strategy generated returns exceeding 20% over the past decade and the board added a new $5 billion buyback authorization in July 2026 on top of $1.42 billion remaining under its February program. The quarterly payout increased to $1.20 per share from $1.13 a year earlier, while management said it intends to deliver prudent annual dividend growth that remains sustainable through the cycle.

Valero's cash flow will benefit from the $230 million St. Charles FCC optimization project, boosting output of high-value gasoline. To boost its cash flow, VLO is pairing low-cost ethanol debottlenecking with yield-maximizing refining upgrades. Improved crude purchasing economics and capture rates, supportive renewable-diesel and ethanol economics and expected insurance coverage for a substantial portion of Port Arthur repair spending are expected to protect cash generation, giving Valero more room to accelerate shareholder returns as excess cash moves toward its long-term target.

Refiners Boosting Shareholder Returns Via Strong Cash FlowMarathon Petroleum Corporation (MPC - Free Report) is a strong peer to Valero on shareholder returns, returning more than $2.8 billion to shareholders in second-quarter 2026 through dividends and share repurchases. MPC had $6.1 billion remaining under its share-repurchase authorizations as of June 30, 2026, providing additional capacity for future buybacks.

HF Sinclair Corporation (DINO - Free Report) strengthened shareholder returns, returning $265 million through dividends and share repurchases in second quarter of 2026. DINO increased its regular quarterly dividend by 5% to 52.5 cents per share, while strong refining results and $1.51 billion of operating cash flow supported its capital-return strategy.

Therefore, MPC and DINO offer investors exposure to refiners that perform well and return capital and both stocks are likely to keep benefiting shareholders if strong refining margins persist.

VLO’s Price Performance, Valuation & EstimatesValero shares have risen 131.1% over the past year compared with the industry’s 105.3% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, VLO trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 7.2X. This is above the broader industry average of 5.34X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for VLO's 2026 earnings has remained constant over the past seven days.

Image Source: Zacks Investment Research

VLO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Valero expects favorable refining fundamentals as inventories stay low and capacity remains constrained.VLO's refining flexibility lets it shift product yields to capture margins during volatile markets.Middle East and Russia disruptions could tighten refining supply and support higher crack spreads. Valero Energy’s (VLO - Free Report) near-term outlook is supported by a constructive refining environment. In its latest earnings call, the company said it expects refining fundamentals to remain favorable due to significantly lower light-product inventories and constrained excess refining capacity globally. Management also believes that future mid-cycle refining margins could remain higher than historical averages, which should support higher profitability for refining players.

One of the key strengths of Valero is its complex, coastal refining system, which is capable of efficiently processing heavy sour grades into high-value refined products. Moreover, its Gulf Coast refining network provides flexibility in feedstock sourcing and exposure to global product markets. Valero’s refinery systems allow it to shift product yields between light products and distillates based on market signals, enhancing margin capture during volatile times.

Valero expects the refining market to remain constrained, as some refinery capacity in the Middle East may take longer to return due to the extensive damage caused by the conflict. Moreover, Ukrainian attacks on Russian refining facilities have further constrained refining capacity, tightening global supply. Prolonged supply disruptions amid resilient demand for refined products are expected to support higher crack spreads, thereby aiding VLO’s profitability in the future.

Refining Players That Can Benefit From a Constructive Margin EnvironmentPBF Energy (PBF - Free Report) has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries - Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery — with a combined throughput capacity of one million barrels per day and can process a wide range of feedstocks. The company’s large-scale refining network enables it to capitalize on favorable refining market conditions. 

Par Pacific Holdings (PARR - Free Report) operates an integrated downstream network spanning refining, logistics, retail and renewable fuels. The integrated platform works from sourcing crude to converting it into refined fuels and distributing the products through its retail and logistics channels. The downstream energy firm has a combined refining capacity of 219,000 barrels per day across Hawaii, Montana, Washington and Wyoming. This integrated setup provides the company with the operational flexibility to capitalize on favorable refining market conditions.

VLO’s Price Performance, Valuation & EstimatesValero Energy’s shares have jumped 135.7% over the past year compared with the 106.9% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, VLO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.25X. This is above the broader industry average of 5.32X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for VLO’s 2026 earnings has been revised upward over the past seven days.

Image Source: Zacks Investment Research

VLO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BNP Paribas bought a new stake in Valero Energy Corporation (NYSE:VLO – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 8,385 shares of the oil and gas company’s stock, valued at approximately $2,200,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Hsbc Holdings PLC grew its position in Valero Energy by 2.8% during the second quarter. Hsbc Holdings PLC now owns 743,997 shares of the oil and gas company’s stock worth $194,174,000 after buying an additional 20,234 shares during the period. Field & Main Bank purchased a new position in shares of Valero Energy during the 2nd quarter worth approximately $1,782,000. Kingsview Wealth Management LLC acquired a new position in shares of Valero Energy during the 2nd quarter worth approximately $4,855,000. Beacon Pointe Advisors LLC purchased a new stake in Valero Energy in the 2nd quarter valued at approximately $26,390,000. Finally, Pin Oak Investment Advisors Inc. purchased a new stake in Valero Energy in the 2nd quarter valued at approximately $413,000. 78.69% of the stock is currently owned by institutional investors and hedge funds.

More Valero Energy News Here are the key news stories impacting Valero Energy this week:

Positive Sentiment: Tight refining market supports margins: Historically low fuel inventories, limited excess refining capacity and ongoing supply disruptions are creating a favorable environment for higher crack spreads. Valero’s flexible, complex coastal refinery network is well positioned to process various crude grades and supply multiple fuel markets. Valero Energy Looks Well Placed in the Tight Global Refining Market Positive Sentiment: Strong second-quarter performance and estimates: Valero’s second-quarter 2026 results reportedly showed substantial year-over-year improvement in adjusted EPS and revenue. Rising consensus estimates and a Zacks Rank #1 (Strong Buy) indicate that analysts are becoming more constructive on the company’s earnings prospects. Did Strong Q2 2026 Earnings and Refining Tailwinds Just Shift Valero Energy’s Investment Narrative? Positive Sentiment: Relative market strength and favorable valuation: VLO recently gained while the broader market declined. Its low PEG ratio compared with industry peers may be adding to the stock’s appeal, particularly as refining profitability expectations improve. Valero Energy Gains as Market Dips Negative Sentiment: One analyst downgrade: Erste Group Bank AG lowered Valero from “buy” to “hold,” which could limit upside sentiment after the stock’s strong advance and near-record trading levels. Finviz Valero Analyst Update Analysts Set New Price Targets A number of research analysts have recently commented on the stock. UBS Group upped their price objective on shares of Valero Energy from $280.00 to $355.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Citigroup lifted their price objective on Valero Energy from $259.00 to $302.00 and gave the company a “neutral” rating in a research note on Tuesday, July 14th. Piper Sandler reiterated an “overweight” rating and set a $329.00 target price on shares of Valero Energy in a report on Thursday, July 23rd. Morgan Stanley increased their target price on shares of Valero Energy from $232.00 to $255.00 and gave the stock an “equal weight” rating in a research report on Friday, June 12th. Finally, Erste Group Bank lowered Valero Energy from a “buy” rating to a “hold” rating in a research report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $288.00. Get Our Latest Stock Analysis on Valero Energy

Insiders Place Their Bets In other Valero Energy news, SVP Eric A. Fisher sold 7,500 shares of the business’s stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $268.17, for a total value of $2,011,275.00. Following the transaction, the senior vice president directly owned 19,742 shares in the company, valued at $5,294,212.14. The trade was a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.36% of the stock is currently owned by insiders.

Valero Energy Stock Performance Shares of VLO stock opened at $352.66 on Friday. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. The firm has a market cap of $101.54 billion, a P/E ratio of 14.63, a PEG ratio of 0.23 and a beta of 0.55. The stock’s 50-day moving average is $303.55 and its two-hundred day moving average is $259.07. Valero Energy Corporation has a fifty-two week low of $150.10 and a fifty-two week high of $353.00.

Valero Energy (NYSE:VLO – Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The oil and gas company reported $12.54 EPS for the quarter, topping the consensus estimate of $10.11 by $2.43. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The company had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. During the same quarter in the prior year, the business posted $2.28 EPS. Valero Energy’s quarterly revenue was up 48.8% on a year-over-year basis. Analysts predict that Valero Energy Corporation will post 40.62 earnings per share for the current fiscal year.

Valero Energy Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, July 31st will be paid a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, July 31st. Valero Energy’s dividend payout ratio is presently 19.92%.

Valero Energy Profile (Free Report)

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company’s operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.

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Whether you're a growth, value, income, or momentum-focused investor, building a successful investment portfolio takes skill, research, and a little bit of luck.

But what's the best way to find the right combination of stocks? Because funding things like your retirement, your kids' college tuition, or your short- and long-term savings goals will definitely require significant returns.

Enter the Zacks Rank.

What is the Zacks Rank?A unique, proprietary stock-rating model, the Zacks Rank uses earnings estimate revisions, or changes to a company's earnings expectations, to help investors create a winning portfolio.

There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.

Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.

Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.

Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.

Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.

Each factor is given a raw score, which is recalculated every night and compiled into the Zacks Rank. Utilizing this data, stocks are put into five different groups: Strong Buy, Buy, Hold, Sell, and Strong Sell.

The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.

Institutional investors are responsible for managing the trillions of dollars invested in mutual funds, hedge funds, and investment banks. Research has shown that these investors can and do move the market due to the large amount of money they deal with, and thus, the market tends to move in the same direction as them.

In order to figure out the fair value of a company and its shares, these investors will build valuation models focused on earnings and earnings expectations. Because if you raise estimates for the bottom line, it creates a higher fair value for a company.

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Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.

Let's take a look at Valero Energy (VLO - Free Report) , which was added to the Zacks Rank #1 list on August 15, 2026. Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The company is headquartered in San Antonio, TX. It was founded in 1980 and is one of the largest independent refiners and marketers of petroleum products in the United States.

Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $11.3 to $40.62 per share. VLO also boasts an average earnings surprise of 26.8%.

Earnings are forecasted to see growth of 282.9% for the current fiscal year, and sales are expected to increase 19.5%.

Additionally, VLO has climbed higher over the past four weeks, gaining 11.9%. The S&P 500 is up 2.8% in comparison.

Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Valero Energy should be on investors' shortlist.

If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.

Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>

Key Takeaways Valero expects tight fuel inventories and limited refining capacity to support favorable market conditions.Strong Latin American gasoline demand and European jet-fuel opportunities are boosting VLO's export prospects.Valero's refining margin increased to $6.34 billion in Q2 2026 from $3.28 billion a year earlier. Valero Energy Corporation (VLO - Free Report) expects refining conditions to remain favorable, supported by low global fuel inventories, tight refining capacity and steady transportation-fuel demand. Management noted that roughly 5 million barrels per day (MMBbl/d) of global refining capacity was offline, while light-product inventories were about 130 million barrels below normal seasonal levels. Even if current conflicts ended immediately, consultant data cited by Valero suggested that global inventories could remain below the five-year average through 2027, supporting continued demand for refined-product exports.

Valero is well-positioned to benefit from this tight supply environment because it operates 14 refineries with roughly 3 MMBbl/d of combined throughput capacity and sells products across several international markets. Management highlighted strong gasoline export demand from Latin America, while reduced gasoline flows from Europe into the United States have further tightened the market. Valero has an open arbitrage opportunity to export jet fuel to Europe, giving the company another avenue to capitalize on regional fuel shortages.

These export opportunities are already supporting Valero’s refining economics, with management stating that strong export markets and export premiums helped improve Gulf Coast capture rates in second quarter of 2026. Valero’s refining margin reached $6.34 billion in second-quarter 2026, compared with $3.28 billion a year earlier, reflecting the strength of the current refining environment. Therefore, if global product inventories remain tight and refining capacity stays constrained, Valero’s large refining system and access to export markets are well-positioned to capture attractive international fuel demand.

How MPC & PSX Are Responding to Tight Fuel SupplyMarathon Petroleum Corporation (MPC - Free Report) and Phillips 66 (PSX - Free Report) are two other major refiners navigating tight global fuel supplies and positioning their operations to capture opportunities arising from constrained product markets.

Marathon Petroleum noted in its latest earnings call that global gasoline and diesel supplies remain constrained, with refinery outages in Russia and the Middle East adding further pressure to already low inventories. To respond to these conditions, MPC is focusing production on products where demand is strongest. The company reported record distillate exports in the second quarter of 2026, supported by attractive export opportunities in Latin America and Europe. Marathon Petroleum is expanding its refining capabilities through a 90,000-barrel-per-day (Bbl/d) distillate hydrotreater at Galveston Bay and a Garyville project designed to add 10,000 Bbl/d of export-premium gasoline output by the end of 2027.

Phillips 66 highlighted increasingly tight global refining fundamentals, driven by low fuel inventories and significant refinery disruptions across Asia, the Middle East and Russia. To capitalize on these conditions, the company maintained 96% refinery utilization in second quarter of 2026 while leveraging its commercial and logistics network to move feedstocks and refined products toward higher-value markets. Its expanded marine fleet and logistics flexibility further strengthen its ability to respond to regional shortages and capture attractive margins.

VLO’s Price Performance, Valuation & EstimatesValero shares have risen 143% over the past year compared with the industry’s 84.5% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, VLO trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 7.1X. This is above the broader industry average of 5.66X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for VLO's 2026 earnings has remained constant over the past seven days.

Image Source: Zacks Investment Research

VLO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bell & Brown Wealth Advisors LLC lowered its position in Valero Energy Corporation (NYSE:VLO – Free Report) by 4.0% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 40,713 shares of the oil and gas company’s stock after selling 1,706 shares during the quarter. Valero Energy accounts for approximately 3.2% of Bell & Brown Wealth Advisors LLC’s holdings, making the stock its 6th biggest holding. Bell & Brown Wealth Advisors LLC’s holdings in Valero Energy were worth $10,603,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in VLO. State Street Corp raised its position in shares of Valero Energy by 0.9% during the 4th quarter. State Street Corp now owns 18,177,191 shares of the oil and gas company’s stock worth $2,959,065,000 after purchasing an additional 163,975 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of Valero Energy by 0.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 11,950,982 shares of the oil and gas company’s stock valued at $1,945,500,000 after buying an additional 63,919 shares during the last quarter. Norges Bank purchased a new position in shares of Valero Energy during the fourth quarter valued at approximately $1,111,542,000. Franklin Resources Inc. lifted its stake in shares of Valero Energy by 7.5% during the fourth quarter. Franklin Resources Inc. now owns 5,668,210 shares of the oil and gas company’s stock valued at $922,728,000 after buying an additional 394,693 shares during the period. Finally, Bank of America Corp DE boosted its position in Valero Energy by 11.4% during the first quarter. Bank of America Corp DE now owns 5,033,310 shares of the oil and gas company’s stock worth $1,243,630,000 after acquiring an additional 516,975 shares during the last quarter. Institutional investors and hedge funds own 78.69% of the company’s stock.

Wall Street Analysts Forecast Growth Several equities analysts recently commented on the company. Wells Fargo & Company upped their target price on Valero Energy from $292.00 to $356.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Weiss Ratings raised Valero Energy from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, August 6th. Piper Sandler restated an “overweight” rating and issued a $329.00 price target on shares of Valero Energy in a report on Thursday, July 23rd. Barclays upped their price objective on shares of Valero Energy from $279.00 to $323.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Finally, Mizuho raised their target price on shares of Valero Energy from $289.00 to $300.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $288.00.

View Our Latest Report on Valero Energy Insider Buying and Selling at Valero Energy In related news, SVP Eric A. Fisher sold 7,500 shares of the company’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the completion of the sale, the senior vice president directly owned 19,742 shares of the company’s stock, valued at approximately $5,294,212.14. This represents a 27.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.36% of the company’s stock.

Valero Energy Stock Performance Shares of NYSE:VLO opened at $345.99 on Thursday. The business has a 50-day moving average of $289.39 and a two-hundred day moving average of $251.90. The firm has a market capitalization of $99.62 billion, a PE ratio of 14.36, a P/E/G ratio of 0.23 and a beta of 0.55. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. Valero Energy Corporation has a 12 month low of $137.88 and a 12 month high of $351.00.

Valero Energy (NYSE:VLO – Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, beating the consensus estimate of $10.11 by $2.43. The business had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%.The company’s revenue was up 48.8% compared to the same quarter last year. During the same period in the previous year, the company posted $2.28 EPS. As a group, research analysts forecast that Valero Energy Corporation will post 40.62 earnings per share for the current year.

Valero Energy Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, July 31st will be issued a dividend of $1.20 per share. The ex-dividend date is Friday, July 31st. This represents a $4.80 annualized dividend and a dividend yield of 1.4%. Valero Energy’s payout ratio is presently 19.92%.

Valero Energy Profile (Free Report)

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company’s operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.

See Also Five stocks we like better than Valero Energy Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding VLO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Valero Energy Corporation (NYSE:VLO – Free Report).

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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today August 19th:

Enersys (ENS - Free Report) : This company, which is engaged in manufacturing, marketing and distribution of various industrial batteries, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.4% over the last 60 days.

Enersys has a PEG ratio of 1.04 compared with 1.62 for the industry. The company possesses a Growth Score of A.

National Energy Services Reunited (NESR - Free Report) : This company, which is one of the largest national oilfield services providers in the MENA and Asia Pacific regions, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.3% over the last 60 days.

National Energy Services Reunited has a PEG ratio of 0.34 compared with 0.58 for the industry. The company possesses a Growth Score of A.

Valero Energy (VLO - Free Report) : This company, which is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 38.5% over the last 60 days.

Valero Energy has a PEG ratio of 0.23 compared with 0.43 for the industry. The company possesses a Growth Score of A.

See the full list of top ranked stocks here.

Learn more about the Growth score and how it is calculated here.

U.S. motorists are once again feeling the pinch at the pump, with the average retail price of regular gasoline climbing above $4 per gallon. The U.S. Energy Information Administration (EIA) recently pegged the nationwide average at about $4.10 per gallon, underscoring the sharp rise in fuel costs.

While higher gasoline prices are a headwind for consumers, they can create a favorable backdrop for refiners when elevated product prices translate into stronger refining margins.

That makes the Zacks Oil and Gas–Refining and Marketing industry particularly noteworthy. The group currently ranks in the top 9% of more than 240 Zacks industries, with these four members holding spots on the coveted Zacks Rank #1 (Strong Buy) list.

Delek US Holdings – DKStock Price: $67Delek US Holdings (DK - Free Report) ) stands to benefit through its refining operations and exposure to transportation fuels.

The company reported second-quarter 2026 adjusted EBITDA of $638.7 million, up 258% from $177.9 million in Q2 2205. Management highlighted its high distillate yield, access to advantaged crude, and improving refinery performance as positives in the current high-margin environment.

DK also has the highest annual dividend yield on the list at a respectable 1.5%.

Par Pacific Holdings – PARRStock Price: $82Par Pacific Holdings (PARR - Free Report) ) is enjoying a significant lift from stronger refining margins across its geographically diverse refining system.

Second-quarter refining segment adjusted EBITDA surged 409% to $552 million from $108.4 million a year earlier, while adjusted gross margin jumped to $680.4 million from $231.8 million.

The company also completed most of its annual turnaround work, positioning its refineries to capitalize on the favorable margin backdrop as gasoline prices remain elevated.

It’s noteworthy that PARR has the cheapest forward P/E multiple on the list, trading at just 3X forward earnings.

PBF Energy – PBFStock Price: $75PBF Energy ((PBF - Free Report) ) offers substantial exposure to improving gasoline and refined-product economics through its large U.S. refining network.

Second-quarter 2026 income from operations climbed to $1.27 billion from just $43 million a year earlier, while adjusted income from operations reached $1.05 billion versus a loss in the prior-year period.

PBF also captured strong refined-product margins from the return of its Martinez refinery to full operations in May, a 157,000 barrel per day (bpd) facility that produces gasoline, jet fuel, intermediates, and other petroleum products for California and the Bay Area in particular.

Valero Energy – VLOStock Price: $347Valero Energy (VLO - Free Report) ) is perhaps the clearest large-cap beneficiary of robust transportation-fuel margins. Its refining segment generated $4.5 billion in Q2 operating income, up sharply from $1.3 billion a year ago, while refining throughput averaged roughly 3 million bpd.

Bottom LineGasoline prices above $4 per gallon are painful for consumers, but the environment can be very favorable for those investing in refiners that are able to capture strong margins on the fuels they produce.

With DK, PARR, PBF, and VLO carrying a Zacks Rank #1 (Strong Buy) and operating in one of the highest-ranked Zacks industries, these refining stocks warrant attention as elevated fuel prices continue to support downstream profitability and are leading to a sharp uptick in their EPS revisions.

Here are two stocks with buy rank and strong value characteristics for investors to consider today, August 17th:  

Valero Energy (VLO - Free Report) : This company, which is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 38.5% over the last 60 days.

Valero Energy has a price-to-earnings ratio (P/E) of 8.41 compared with 12.60 for the industry. The company possesses a Value Score of A.

Star Bulk Carriers (SBLK - Free Report) : This global shipping company, which provides worldwide seaborne transportation solutions in the dry bulk sector, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.6% over the last 60 days.

Star Bulk Carriers has a price-to-earnings ratio (P/E) of 6.50 compared with 14.80 for the industry. The company possesses a Value Score of B.

See the full list of top ranked stocks here.

Learn more about the Value score and how it is calculated here.

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Have you been paying attention to shares of Valero Energy (VLO - Free Report) ? Shares have been on the move with the stock up 7.5% over the past month. The stock hit a new 52-week high of $324.38 in the previous session. Valero Energy has gained 99% since the start of the year compared to the 28.6% move for the Zacks Oils-Energy sector and the 72.1% return for the Zacks Oil and Gas - Refining and Marketing industry.

What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 30, 2026, Valero Energy reported EPS of $12.54 versus consensus estimate of $9.87.

For the current fiscal year, Valero Energy is expected to post earnings of $40.62 per share on $141.16 in revenues. This represents a 282.85% change in EPS on a 15.05% change in revenues. For the next fiscal year, the company is expected to earn $29.17 per share on $134.21 in revenues. This represents a year-over-year change of -28.21% and -4.92%, respectively.

Valuation MetricsThough Valero Energy has recently hit a 52-week high, what is next for Valero Energy? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Valero Energy has a Value Score of A. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 8.3X. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 8.9X. Additionally, the stock has a PEG ratio of 0.21. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Valero Energy an interesting choice for value investors.

Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Valero Energy currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Valero Energy fits the bill. Thus, it seems as though Valero Energy shares could still be poised for more gains ahead.

How Does VLO Stack Up to the Competition?Shares of VLO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is HF Sinclair Corporation (DINO - Free Report) . DINO has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.

Earnings were strong last quarter. HF Sinclair Corporation beat our consensus estimate by 20.96%, and for the current fiscal year, DINO is expected to post earnings of $11.85 per share on revenue of $32.52 billion.

Shares of HF Sinclair Corporation have gained 2.9% over the past month, and currently trade at a forward P/E of 7.22X and a P/CF of 8.46X.

The Oil and Gas - Refining and Marketing industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VLO and DINO, even beyond their own solid fundamental situation.

Energy markets have spent 2026 relearning a lesson investors forget in calm years: supply chains built over four decades can unravel in four months. The Strait of Hormuz shutdown scrambled Middle East crude flows, a U.S. naval blockade briefly cut Venezuela off from the water entirely, and Washington has spent the past several months rewriting the sanctions rulebook that governs who gets to buy Venezuelan barrels. 

Now the fallout is showing up in the government’s own numbers. Preliminary data from the U.S. Energy Information Administration confirms that U.S. refiners imported zero barrels of Saudi crude in July — the first time that’s happened since 1985.

The Numbers Behind the Reversal As recently as March, U.S. refiners were buying more than 800,000 barrels of Saudi crude a day, according to the EIA. By July, that number was zero for the entire month. Occasional weekly readings have hit zero before, but a full month without a single Saudi barrel hasn’t happened in over 40 years.

Hormuz-related disruptions choked off Gulf crude flows and pushed prices on Middle East grades higher, so refiners went shopping elsewhere. Venezuela absorbed most of the difference: U.S. imports of its crude rose to roughly 600,000 barrels a day in July, up from about 100,000 barrels a day in January.

That jump coincided with Washington’s expanded access to Venezuelan oil. Following the ouster of the Maduro government, the Treasury Department authorized U.S. entities to lift, purchase, and transport Venezuelan crude, extending beyond Chevron (NYSE:CVX | CVX Price Prediction) to include BP (NYSE:BP), Eni (NYSE:E), Repsol, and Shell (NYSE:SHEL). The EIA said in February that it expected Venezuelan output to climb back toward its pre-blockade level of 1.1 million to 1.2 million barrels a day by mid-2026.

Who Wins From the Venezuela Pivot Two kinds of companies benefit here, and they’re not the same trade. Refiners with the metallurgy to process Venezuela’s heavy, high-sulfur crude get cheaper feedstock and wider crack spreads. Chevron gets something rarer: a license that lets it operate inside Venezuela at all.

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Company P/E Ratio Dividend Yield Venezuela/Heavy Crude Angle Valero Energy (NYSE:VLO) 12.3 1.6% Gulf Coast refineries built for heavy sour crude; among refiners named as candidates to resume PDVSA purchases Marathon Petroleum (NYSE:MPC) 10.2 1.3% Diversified feedstock slate limits direct Venezuela exposure Phillips 66 (NYSE:PSX) 11.6 2.4% Cut Middle East crude to under 1% of slate Chevron 17.9 3.7% Venezuela output near 250,000 bpd pre-restriction, cut to ~100,000 bpd last summer; negotiating with Treasury to expand its license Valero’s complexity — its refineries are built to run heavy, discounted crudes rather than light sweet grades — is exactly the asset class this shift rewards. Chevron’s position is different: it’s the only U.S. major with standing operations in Venezuela, and its ability to negotiate a bigger license is a regulatory catalyst, not just a commodity one. Surprisingly, that makes Chevron’s Venezuela business more of a binary political outcome than a refining-margin story.

From 800,000 barrels to zero in mere months: witness the most violent shift in global energy flows in four decades. © 24/7 Wall St. The Risks Investors Shouldn’t Ignore None of this is permanent, and it shouldn’t be treated as such. Kpler forecasts Saudi shipments to the U.S. rebounding to roughly 300,000 barrels a day this month — back near historical norms. Granted, that’s still down from March’s 800,000-barrel pace, but it shows how quickly a “generational shift” headline can revert once alternate trade routes are found.

Venezuela carries its own tail risk. Every barrel flowing north still depends on a sanctions license that the Treasury can amend or revoke, and PDVSA’s infrastructure spent years underinvested before the blockade. In any case, refiners leaning hard into Venezuelan crude are betting on the durability of a political decision, not just a supply contract.

Key Takeaway The zero-Saudi-barrel month is a real data point, not a permanent state of affairs — expect Saudi volumes to partially recover if Hormuz-related disruptions ease. For investors, the more durable trade sits with refiners that can process heavy Venezuelan crude at a discount, with Valero best positioned on refining complexity and Chevron carrying the highest upside — and the highest political risk — through its Venezuela license. 

Sharp investors should track Treasury’s licensing decisions as closely as EIA’s monthly import data. In this market, the regulator is setting the crude flows as much as the refiners are.

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Contact [email protected] for any questions or corrections.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

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.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% 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.

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To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Valero Energy (VLO - Free Report) Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The company is headquartered in San Antonio, TX. It was founded in 1980 and is one of the largest independent refiners and marketers of petroleum products in the United States.

VLO is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. VLO has a Growth Style Score of A, forecasting year-over-year earnings growth of 272.8% for the current fiscal year.

For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $11.25 to $39.55 per share. VLO boasts an average earnings surprise of +26.8%.

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

Valero Energy (VLO - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Valero Energy is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Valero Energy, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Valero EnergyFor the fiscal year ending December 2026, this oil refiner is expected to earn $39.19 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Valero Energy. Over the past three months, the Zacks Consensus Estimate for the company has increased 39.9%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Valero Energy to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Here are three stocks with buy rank and strong income characteristics for investors to consider today, August 5:

Aperam S.A. (APEMY - Free Report) : This stainless steel and alloy products company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 12.2% over the last 60 days.

This Zacks Rank #1 company has a dividend yield of 3.7%, compared with the industry average of 0.7%.

Valero Energy Corporation (VLO - Free Report) : This transportation fuels and petrochemical products company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 33.3% over the last 60 days.

This Zacks Rank #1 company has a dividend yield of 1.6%, compared with the industry average of 1.5%.

Colruyt Group N.V. (CUYTY - Free Report) : This operator of retail, wholesale, health, fitness, non-food, and renewable energy businesses has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.1% over the last 60 days.

This Zacks Rank #1 company has a dividend yield of 1.9%, compared with the industry average of 0.0%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Find more top income stocks with some of our great premium screens.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Valero Energy (VLO - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Valero Energy currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if VLO is a promising momentum pick, let's examine some Momentum Style elements to see if this oil refiner holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For VLO, shares are up 3.44% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 2.37% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.77% compares favorably with the industry's 14.21% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Valero Energy have increased 23.94% over the past quarter, and have gained 127.74% in the last year. On the other hand, the S&P 500 has only moved 5.43% and 23.19%, respectively.

Investors should also take note of VLO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now VLO is averaging 2,777,171 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with VLO.

Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost VLO's consensus estimate, increasing from $28.26 to $37.66 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been 1 downward revision in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that VLO is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Valero Energy on your short list.