Track market-moving stories before they get noisy

Bollard Group LLC increased its holdings in Valero Energy Corporation (NYSE: VLO) by 17.3% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 73,212 shares of the oil and gas company's stock after buying an additional 10,816 shares during the period. Bollard

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The 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.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

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

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

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

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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

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

Stock to Watch: 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.

Momentum investors should take note of this Oils-Energy stock. VLO has a Momentum Style Score of A, and shares are up 28.3% over the past four weeks.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $4.42 to $32.68 per share. VLO boasts an average earnings surprise of +28%.

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

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? 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 are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

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

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

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

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

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

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

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

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

Stock to Watch: 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 207.4% 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 $4.35 to $32.61 per share. VLO also boasts an average earnings surprise of +28%.

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

In the latest close session, Valero Energy (VLO - Free Report) was up +1.18% at $313.31. This change outpaced the S&P 500's 0.19% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.

The stock of oil refiner has risen by 31.04% in the past month, leading the Oils-Energy sector's gain of 3.6% and the S&P 500's gain of 0.55%.

Analysts and investors alike will be keeping a close eye on the performance of Valero Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2026. The company is forecasted to report an EPS of $9.81, showcasing a 330.26% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $35.95 billion, indicating a 20.26% growth compared to the corresponding quarter of the prior year.

VLO's full-year Zacks Consensus Estimates are calling for earnings of $32.61 per share and revenue of $135.14 billion. These results would represent year-over-year changes of +207.35% and +10.15%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Valero Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 18.79% upward. Valero Energy presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Valero Energy is holding a Forward P/E ratio of 9.5. This denotes no noticeable deviation relative to the industry average Forward P/E of 9.5.

It is also worth noting that VLO currently has a PEG ratio of 0.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Oil and Gas - Refining and Marketing industry had an average PEG ratio of 0.37.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Shares of Valero Energy (VLO - Free Report) have been strong performers lately, with the stock up 31% over the past month. The stock hit a new 52-week high of $309.9 in the previous session. Valero Energy has gained 90.2% since the start of the year compared to the 24.7% gain for the Zacks Oils-Energy sector and the 53.9% 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, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 30, 2026, Valero Energy reported EPS of $4.22 versus consensus estimate of $3.07.

For the current fiscal year, Valero Energy is expected to post earnings of $32.61 per share on $135.14 in revenues. This represents a 207.35% change in EPS on a 10.15% change in revenues. For the next fiscal year, the company is expected to earn $22.84 per share on $129.08 in revenues. This represents a year-over-year change of -29.96% and -4.48%, 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 is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Valero Energy has a Value Score of B. 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 9.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 9.5X. On a trailing cash flow basis, the stock currently trades at 14.4X versus its peer group's average of 10.2X. Additionally, the stock has a PEG ratio of 0.37. 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 #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 meets the list of requirements. Thus, it seems as though Valero Energy shares could have a bit more room to run in the near term.

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 #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.

Earnings were strong last quarter. HF Sinclair Corporation beat our consensus estimate by 560.00%, and for the current fiscal year, DINO is expected to post earnings of $10.27 per share on revenue of $31.08 billion.

Shares of HF Sinclair Corporation have gained 37.4% over the past month, and currently trade at a forward P/E of 8.63X and a P/CF of 8.76X.

The Oil and Gas - Refining and Marketing industry is in the top 18% 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.

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.

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 A. 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 #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.

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 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 4.83% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 6.35% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 23.47% compares favorably with the industry's 15.65% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Valero Energy have increased 29.15% over the past quarter, and have gained 102.57% in the last year. In comparison, the S&P 500 has only moved 8.52% and 21.6%, 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 2,977,036 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this 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 $28.26 to $32.04 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.

© zorazhuang / E+ via Getty Images

The energy sector has quietly produced some of 2026’s biggest winners. While much of Wall Street has remained focused on artificial intelligence and technology stocks, oil refiners have delivered returns that rival many of the market’s hottest names. Marathon Petroleum (NYSE:MPC | MPC Price Prediction), Valero (NYSE:VLO), and HF Sinclair (NYSE:DINO) have all gained more than 80% this year, while even Phillips 66 (NYSE:PSX) has climbed over 54%. 

Those gains haven’t happened just because crude oil prices are soaring. The real story lies elsewhere, and investors who understand one key industry metric will have a much clearer picture of whether this rally still has room to run.

The Number That Matters Most Let’s start with the industry’s most important profitability gauge: the 3-2-1 crack spread.

Despite the intimidating name, the concept is surprisingly straightforward. The 3-2-1 spread estimates the gross margin a refinery earns by turning three barrels of crude oil into two barrels of gasoline and one barrel of distillate fuel, such as diesel or jet fuel. It’s essentially the difference between what refiners pay for crude and what they receive for the fuels they sell.

When that spread widens, refiners generally make more money on every barrel they process. When it narrows, profits come under pressure.

According to Bloomberg data, the U.S. WTI 3-2-1 crack spread recently climbed to a $59 per barrel, and far above the historical range that refiners typically enjoy. Since the start of 2026, refining margins have nearly tripled.

What’s unusual this time is why margins have expanded. Although crude oil prices pulled back recently after a truce between the U.S. and Iran was signed (an agreement that President Trump just declared was “over”), gasoline and diesel prices have remained elevated because due to a severe shortage of global refining capacity, the Iran War, Ukrainian attacks on Russian refineries, and lower fuel exports. That combination creates an unusually profitable environment for refiners.

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While tech steals the headlines, oil refiners are quietly staging an 80% rally that dwarfs the S&P 500. It’s not about the price of crude—it’s about the 'crack spread' heartbeat of the industry. © 24/7 Wall St. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marathon Petroleum didn't make the cut. Grab the names FREE today.

The Stocks Tell The Story Investors haven’t missed the opportunity. Refinery stocks are soaring in 2026, with many of the biggest players rising more than 80% compared to a near-11% gain by the S&P 500. The market isn’t rewarding refiners because they produce oil. It’s rewarding them because they’re earning unusually rich margins converting oil into finished fuels.

Oil producers generally benefit when crude prices rise. Refiners can thrive when crude prices stay relatively subdued while gasoline and diesel remain expensive. Those are two very different investment theses.

Granted, each company has its own strengths. Marathon Petroleum continues generating substantial cash flow through its large refining network and MPLX (NYSE:MPLX) midstream partnership. Valero remains one of North America’s lowest-cost operators. Phillips 66 offers additional exposure through chemicals and midstream assets. Yet all the companies currently share one common tailwind: elevated refining margins.

Watch The Margin, Not The Oil Price That said, crack spreads rarely stay elevated forever. History shows refinery margins tend to normalize as fuel supplies increase, refinery utilization rises, or crude prices rebound faster than gasoline and diesel prices. Reuters recently noted that today’s extraordinary profitability could prove temporary as crude markets rebalance following recent supply disruptions.

That’s why savvy investors shouldn’t focus solely on headline oil prices. If crude crude prices fall again, it doesn’t automatically hurt refiners. In some cases, it actually boosts profitability if refined products remain expensive.

Key Takeaway In short, refinery stocks have earned their remarkable gains because one number has moved decisively in their favor: the WTI 3-2-1 crack spread. As long as that margin remains well above historical norms, companies like Marathon Petroleum, Valero, HF Sinclair, and Phillips 66 should continue generating robust cash flow.

Ultimately, investors considering these stocks should spend less time watching the daily price of crude oil and more time following refining margins. The crack spread has become the industry’s financial heartbeat, and today it’s still beating loudly.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marathon Petroleum didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Issued on behalf of Conexeu Sciences Inc.

Conexeu Sciences Inc. (NASDAQ: CNXU) is aiming its investigational CXU™ platform at the largest unclaimed frontier in injectable aesthetics: restoring real body volume at a scale today's fillers were never built to reach, a move built on the company's completed 12-month P.R.O.O.F.™ preclinical study.

RENO, Nev., /PRNewswire/ -- Equity Insider News Commentary — Every so often, a wave of demand in one corner of medicine spills over and creates an entirely new market next door. The GLP-1 weight-loss boom is doing exactly that. As roughly 1 in 8 U.S. adults have now used a GLP-1 medication and millions reshape their bodies, a second-order demand has appeared: restoring the natural fullness that rapid weight loss leaves behind. Boston Consulting Group projects provider revenue from GLP-1-related aesthetic care will nearly triple, from about $0.7 billion to $2.0 billion by 2030. Conexeu Sciences Inc. (NASDAQ: CNXU), a preclinical-stage biotechnology company, is aiming its investigational CXU™ tissue-restoration platform at precisely that opening.

Key Takeaways

An unclaimed category. Large-volume body contouring, and restoration of the breasts, hips, and buttocks, is a significant injectable aesthetics category that no product has yet claimed at scale. Conexeu is positioning CXU™ as a potential first mover in what it calls bioregeneration. A multi-billion-dollar backdrop. The buttock augmentation market alone is projected to expand from roughly $2.99 billion in 2023 to $11.72 billion by 2030, while breast implant and reconstruction markets together approach $6 billion by 2030. A completed proof point. Conexeu has finished its 12-month P.R.O.O.F.™ preclinical study evaluating CXU™ in a large-volume model, with detailed findings reserved for peer-reviewed publication. A GLP-1 demand driver. Post-weight-loss volume restoration is emerging as a durable tailwind, with category leaders like Galderma and Novo Nordisk publicly validating the same shift. A capital-cycle parallel. Just as the energy sector shows how a demand supercycle rewards the companies that build the right infrastructure, Conexeu is building the product layer for the aesthetics wave that GLP-1s set in motion. The Open Frontier No Injectable Has Claimed

Large-volume restoration operates at a scale existing injectables were never built to serve. Traditional facial fillers were designed for fine lines and small-volume touch-ups, with a typical syringe holding about one-fifth of a teaspoon. Body restoration often requires hundreds of times that volume. Fat grafting is surgical and loses an estimated 30 to 70 percent of transferred volume to reabsorption, frequently requiring repeat procedures. Implants remain foreign material. So, the largest opportunity in aesthetics has also been its most stubborn: how to restore real volume with a needle instead of an operating room.

Conexeu's answer is CXU™, a thermosensitive, flowable collagen scaffold. It is designed to flow through a fine needle for placement, conform to three-dimensional geometry, and set in situ at body temperature, supplying a structural scaffold the body's own cells and signals can populate, so that tissue can form where the material is placed rather than being displaced by an inert filler. The company completed its 12-month P.R.O.O.F.™ study, short for Performance and Regeneration Outcomes of Flowable Collagen, evaluating that approach in a large-volume model. It is important to note that P.R.O.O.F.™ is a preclinical, animal-model milestone. It does not represent a commercial launch or regulatory clearance, and the findings have not been peer-reviewed.

"Large-volume body contouring is the prize no one has claimed, and it is exactly where we are aiming CXU™," said Miles Harrison, President and CEO of Conexeu. "Neuromodulators, fillers, and biostimulators were each defined by a first mover, and we believe CXU™ can help establish a potential new category, bioregeneration, by pairing volume with tissue regeneration."

What a First Mover Can Do

Category creation in aesthetics is not theoretical. BOTOX® began as a medical product and, after its 2002 aesthetic approval, defined an entirely new injectable category, neuromodulators, from a standing start. That category is now estimated at between $9 and $12 billion, and AbbVie's Botox franchise alone reached roughly $5.9 billion in fiscal 2025. Each injectable category that followed was likewise defined by a first mover. Conexeu's thesis is that large-volume bioregeneration is the next such opening. This is a category analogy, not a product comparison; CXU™ and BOTOX® address different needs by different mechanisms.

"Few existing injectables were designed to restore larger volumes and remain in place. That is a requirement problem, not a marketing problem, and it is why the category remains open," said Claudia Chavez-Munoz, MD, PhD, Chief Scientific Officer. "We are evaluating CXU™ against that requirement through disciplined preclinical work."

The Bigger Lesson: Demand Waves Reward the Builders

Investors who want to understand the opportunity in front of Conexeu can look to a very different corner of the market for the pattern. Across the energy sector, a demand supercycle, driven by tight refining capacity, geopolitical supply disruptions, and structural under-investment, has rewarded the companies positioned with the right assets and the discipline to execute. The specific businesses differ entirely from a preclinical biotech, but the underlying dynamic is the same one Conexeu is betting on: when a powerful, durable wave of demand arrives, the companies that built the right product or infrastructure to meet it are the ones that capture the value. The names below are illustrative market context from that capital cycle, not peers or comparables to CNXU.

Valero Energy (NYSE: VLO) offers the clearest read on how quickly a demand cycle can reprice a business built to serve it. In the first quarter of 2026, Valero swung to net income of $1.3 billion, or $4.22 per share, reversing a $595 million loss a year earlier, as its refining segment generated $1.8 billion in operating income on throughput of 2.9 million barrels per day. Its renewable diesel segment turned a $141 million year-ago loss into $139 million of operating income, a reminder that the same operator can capture more than one wave at once. That is the essence of a platform thesis: build the capability, then let multiple demand streams flow through it, which is exactly the logic behind Conexeu's one-formula, one-device platform strategy.

Talos Energy (NYSE: TALO) shows the leverage that a focused, high-margin operator gains by concentrating on a differentiated niche. The Gulf of America-focused independent delivered first-quarter 2026 production of roughly 89,000 barrels of oil equivalent per day, generating adjusted EBITDA of $293 million, or about $37 per barrel of oil equivalent, among the top-decile margins in its sector. It also agreed to acquire deepwater Gulf assets from Shell for $850 million to deepen that position. The takeaway relevant to Conexeu is not the offshore economics but the principle: an operator that owns a hard-to-replicate niche captures outsized value when demand arrives. Conexeu is trying to establish exactly that kind of defensible position in large-volume bioregeneration before the category exists in earnest.

PBF Energy (NYSE: PBF) illustrates the other side of the same coin: execution risk during the build-out. PBF posted a first-quarter 2026 adjusted loss of $0.88 per share even as revenue rose nearly 12% year over year to $7.90 billion, weighed down by the phased restart of its Martinez refinery after a 14-month rebuild. The company is targeting $350 million in annualized savings through its Refining Business Improvement program. For a preclinical company like Conexeu, PBF is a useful reminder that even businesses positioned for a favorable cycle must still execute through operational milestones, exactly the disciplined, milestone-by-milestone path Conexeu describes for its own program.

Equinor (NYSE: EQNR) rounds out the picture by showing what disciplined, long-horizon investment looks like when it pays off. The Norwegian energy major delivered record first-quarter 2026 production of 2.313 million barrels of oil equivalent per day, up 9% year over year, with adjusted operating income of $9.77 billion, while its renewable power generation grew 29%. Equinor's combination of a cash-generating core and a growing next-generation business is the mature version of the bet Conexeu is making early: fund the platform through its milestones today so it can scale across multiple markets tomorrow. Conexeu is targeting exactly that kind of expansion, from  wound care and periodontal applications to facial and body tissue restoration, subject to the regulatory review still ahead.

The Demand Is Not Speculative

The tailwind behind Conexeu's target market is already visible in the behavior of category leaders. Galderma has run Phase IV clinical work on GLP-1-related facial volume loss, and Novo Nordisk's chief executive publicly signaled interest in aesthetic and longevity medicine in June 2026. Roughly 1 in 8 U.S. adults have now used a GLP-1 medication, and many who transform their bodies look to complete that transformation with restored, natural fullness. Boston Consulting Group estimates the GLP-1 aesthetic opportunity will grow from about $0.7 billion to $2.0 billion over five years. Conexeu is positioning CXU™ to serve that completed-transformation demand.

Consistent with its full program, Conexeu is reserving specific findings, endpoints, and implantation volumes for peer-reviewed publication so the data can be evaluated independently. These are preclinical findings, not peer-reviewed, and clinical significance has not been established. The company is advancing a predicate-based regulatory strategy for its lead candidate, targeting a 510(k) submission in the first quarter of 2027, subject to required testing, manufacturing, and documentation.

CONTINUED… Stay ahead of the next Conexeu Sciences milestone and get the full story and updates here.

About Conexeu Sciences Inc.

Conexeu Sciences Inc. (NASDAQ: CNXU) is a preclinical-stage regenerative tissue platform company. Its patented bioregenerative extracellular matrix (ECM) platform, CXU™, is built on a single structural principle: one formula, one device, designed to scale across multiple addressable markets, including wound care, periodontal applications, and facial and body tissue restoration, with further opportunities in 3D printing, biofabrication, and veterinary markets. The Company is advancing a predicate-based U.S. regulatory strategy with an anticipated 510(k) submission in early 2027 for its initial indication, subject to regulatory review. Miles Harrison serves as President and Chief Executive Officer.

Article Source
Equity Insider
[email protected] 

DISCLAIMER / DISCLOSURE

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. This article is being distributed for Market Equities Limited, ("MEL"), which wholly owns and operates USA News Group. MEL has been paid a fee for Conexeu Sciences Inc. advertising and digital media from Creative Direct Marketing Group ("CDMG"). There may be 3rd parties who may have shares of Conexeu Sciences Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. MEL and its owner/operators do not own any shares of Conexeu Sciences Inc., but reserve the right to buy and sell shares of Conexeu Sciences Inc. at any time without any further notice commencing immediately and ongoing. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material, including this article, which is disseminated by MEL has been reviewed and approved on behalf of Conexeu Sciences Inc. by CDMG. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

CXU™ and the Company's device candidates, including Ten-Minute Tissue™, are investigational and have not been cleared or approved by the U.S. Food and Drug Administration or any other regulatory authority for any use. The P.R.O.O.F study is a preclinical, animal-model study; preclinical results are not necessarily predictive of results in humans, have not been peer-reviewed, and clinical significance has not been established.

FORWARD-LOOKING STATEMENTS:

This publication contains forward-looking statements, including statements regarding the CXU™ platform, Ten-Minute Tissue™, and B.R.E.A.S.T.™; the early-stage, preclinical nature of the company's device candidates and the inherent uncertainty of preclinical and clinical development, including the possibility that preclinical results may not be predictive of clinical outcomes and that study objectives described as met may not translate into clinical benefit, regulatory clearance, or commercial success; the investigational status of CXU™, which is not cleared or approved in any jurisdiction; risks associated with the planned 510(k) submission, including that it may not be completed within the anticipated Q1 2027 timeframe or at all, and that the FDA may request additional information or determine the device is not substantially equivalent to the identified predicate; the ability to expand the platform across additional indications, each of which would require separate regulatory authorization; and the pace and degree of market adoption. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. Except as required by law, the company undertakes no obligation to update any forward-looking statement. References to other companies are based on those companies' public disclosures, are provided for industry context only, and do not imply any partnership, endorsement, affiliation, or comparable performance. CXU™, Ten-Minute Tissue™, and B.R.E.A.S.T.™ are trademarks of Conexeu Sciences Inc. or its subsidiaries.

SOURCE Equity Insider

For Tuesday's Big 3, Aquiles Larrea, Jr. outlines three stocks he sees outperforming no matter the current economic or stock market environment. He likes Altria's (MO) longstanding durability amid volatility, sees Valero Energy (VLO) benefitting from legacy and new electrical advancements, and expects RTX Corp. (RTX) to benefit from its diverse income streams.

13.7.2026 22:13

Americké trhy vstupují do nového týdne pod tíhou střelby v Hormuzském průlivu, kde došlo k oboustrannému porušení příměří. Na úbytě dnes tedy byly růstové tituly v čele s technologickým sektorem. Dařilo se energetickým společnostem díky rostoucí ceně ropy.

Index S&P 500 -0,78 % na 7516,68 b.
Index Dow Jones -0,26 % na 52498,82 b.
Index Nasdaq Composite -1,55 % na 25,873,18 b.

Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +3,2 % Informační technologie -2,1 % Utility +0,7 % Sektor komunikací -1 % Finanční sektor +0,6 % Průmysl -0,9 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna FactSet Research Systems (FDS) +6,5 % APPLVN CRP A O (APP) -13 % Gartner (IT) +6,1 % SANDISK CORP O (SNDK) -13 % Intuit (INTU) +5,4 % MRVL TCHNLGY O (MRVL) -7,8 % Valero Energy (VLO) +5,4 % Oracle (ORCL) -6,5 % Phillips 66 (PSX) +5,3 % Intel (INTC) -6,1 % Zdroj: Reuters

Martin Varecha
Fio banka, a.s.
Prohlášení

Key Takeaways Valero benefits from elevated crack spreads, strong fuel demand and constrained global refining capacity.Rising demand for U.S. Gulf Coast barrels is tightening product inventories.Its Gulf Coast system and logistics network support higher exports while domestic demand stays resilient. Valero Energy (VLO - Free Report) is among the largest independent refiners in the United States, with a combined high-complexity throughput capacity of nearly 3 million barrels per day across its refineries. Its refining footprint is heavily concentrated along the U.S. Gulf Coast, providing feedstock sourcing flexibility and access to high-demand growth markets for selling its refined products. Alongside refining, the company runs a growing renewable diesel and sustainable aviation fuel business through Diamond Green Diesel, as well as 12 ethanol plants.

The current business environment remains supportive for refining players, including Valero. The 3-2-1 crack spread, widely recognized as an indicator of refining profitability, has risen significantly since the start of the conflict in the Middle East and remains at elevated levels. Moreover, during its first-quarter earnings call, VLO noted that constrained global refining capacity, along with tightening refined product flows due to the conflict, has increased demand for refined products, particularly for U.S. Gulf Coast barrels.

Valero is particularly well-positioned to benefit from these trends. Management highlighted a sharp increase in export demand, especially for jet fuel and distillates, which has contributed to declining U.S. product inventories. Its strategically located Gulf Coast refining system and extensive logistics network position Valero to capture increased export volumes while continuing to capitalize on resilient domestic demand. Moreover, low product inventories in key markets are expected to support refining fundamentals and keep margins steady, helping VLO sustain its profitability.

PARR and PBF to Benefit From the Refining EnvironmentPar Pacific Holdings (PARR - Free Report)  operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho; refining operations in Hawaii, Wyoming, Washington and Montana; and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products. PARR currently sports a Zacks Rank #1 (Strong Buy).

PBF 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 1 million barrels per day and the ability to process a wide range of feedstocks. PBF carries a Zacks Rank #3 (Hold) at present.

VLO’s Price Performance, Valuation & EstimatesValero Energy’s shares have jumped 86.2% over the past year compared with the 38.2% 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 8.59X. This is above the broader industry average of 5.73X.

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

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

© jovannig / iStock via Getty Images

Veteran energy analyst Paul Sankey, president of Sankey Research, said in a July 9, 2026, CNBC interview that he believes crude oil is no longer the biggest constraint on the energy system. Instead, the real bottleneck sits in U.S. refining capacity, where limited supply continues to keep gasoline prices elevated even as crude prices remain well below recent highs. That distinction, he says, has major implications for energy investors.

His framing came as oil rose 5% the prior session, with Sankey warning that geopolitics remain unresolved: “The situation obviously has gone rotten again. We never really resolved it. There’s three huge issues here. Control of the Strait of Hormuz, the whole issue of nuclear, and the whole issue of Israel, Lebanon.”

Sankey Says Crude Oil Isn’t the Real Story Sankey’s core point: policymakers have levers on crude but almost none on refined product. “Crude oil is not the problem. Nobody’s burning crude oil in their car. The problem is US gasoline in many ways. Yesterday, by contrast, what we saw was a new low in US gasoline inventories,” he said. He notes that Japan has released over a million barrels a day from strategic reserves, and that the Houthis have cut Suez throughput by 50% for the last three years, while China has cut crude imports by as much as 8 million barrels a day and begun exporting products. Governments can shuffle crude around, but they cannot conjure up refining units.

“Refining margins have gone through the top of the range here. It costs between $5 and $10 per barrel to refine for someone like Valero. And we’re at $60,” Sankey said, versus a historical cost of about $15 per barrel. For context, WTI crude itself sat at just $69.60 per barrel on July 6, 2026, down 26.2% over the prior month. Crude is cheap while gasoline stays expensive.

Valero Is the Purest Way to Play the Refining Boom Valero Energy (NYSE:VLO | VLO Price Prediction) is the cleanest expression of what Sankey describes. In Q1 2026, Valero posted EPS of $4.22 against a $3.16 estimate, with refining segment operating income of $1.81 billion on a $14.90 per barrel refining margin. Gulf Coast distillate margins ran at $27.60 per barrel. The stock has climbed 75.71% year-to-date and 95.27% over the past year to $281.81.

Valero embodies the capacity shrinkage that keeps margins fat. The company is idling its Benicia Refinery in California and evaluating strategic alternatives for its remaining West Coast footprint, a $1.1 billion impairment already booked in FY2025. Every closure tightens the domestic bottleneck Sankey warns about. Wall Street’s consensus price target of $266.94 now sits below the stock’s current price, and shares trade at a forward P/E near 10.

Marathon Petroleum Is Also Benefiting From the Bottleneck Marathon Petroleum (NYSE:MPC) tells the same story at a bigger scale. Q1 2026 adjusted EPS of $1.65 crushed the $0.75 estimate, refining and marketing adjusted EBITDA hit $1.38 billion, and blended refining margins reached $17.74 per barrel, with the West Coast region at $25.71 per barrel.

Management authorized an incremental $5.0 billion buyback, bringing total authorization to $8.6 billion. Shares have climbed 74.12% year-to-date to $280.38.

The Political Wildcard Sankey’s warning leans on policy risk. “I would urge the Trump Administration to stay out of this and let the market sort it out. What’s made us so strong here in oil and gas has been the free market. Because once the government starts messing with it, as they have in Europe, it ends up as a disaster.”

Marathon has already flagged tariff uncertainty on crude imports and potential windfall-profit taxes or maximum-refining-margin penalties in California as active risks. With U.S. regular gasoline at $3.78 per gallon, off a 52-week high of $4.50 in May 2026, the political temptation to intervene will not disappear. For investors, Sankey’s message is that the refining trade is real and structural, but the biggest threat may come from Washington rather than the Strait of Hormuz.

Contact [email protected] for any questions or corrections.

Jessica Inskip (@jessicainskip) takes us through today's Big 3. She highlights Mastercard (MA) as an opportunity within an AI gap she sees, Valero Energy (VLO) holding strong momentum into earnings season, and Bullish (BLSH) as a high-risk, high-beta trade pick.

Key Takeaways Valero stock rose 88.1% in a year, beating the industry and peers Phillips 66 and Marathon Petroleum.Valero's Gulf Coast network helps source discounted heavy sour crude and produce higher-value fuels.Renewable diesel, SAF and ethanol operations expand Valero's exposure to cleaner transportation fuels. Valero Energy (VLO - Free Report) is a leading refining player with a robust network of 14 refineries located across the United States, Canada and Peru. The company has a combined throughput capacity of 3 million barrels per day and a Nelson Complexity Index of 11.5, implying that its refineries can process a wide variety of feedstock into higher-value refined products like diesel and jet fuel. VLO is also involved in the production of low-carbon fuels like renewable diesel and ethanol.

Over the past year, VLO stock has gained 88.1%, outperforming the industry’s 38.4% growth. Its peers, Phillips 66 (PSX - Free Report) and Marathon Petroleum Corporation (MPC - Free Report) , have grown 40.3% and 52.5%, respectively, during the same time frame. While price performance indicates a stock's attractiveness to some extent, it would be wiser to closely examine the company’s current business environment before offering any investment advice.

Image Source: Zacks Investment Research

Refining Business Drives Valero's StrengthValero’s Gulf Coast refining network benefits the company through feedstock sourcing and exposure to high-demand product markets. In its first-quarter earnings calls, the company mentioned that its Gulf Coast presence enabled it to take advantage of discounted heavy sour barrels and optimize the product slate at its refineries, maximizing the production of high-value products like jet fuel.

Valero’s structural advantage stems from the operational flexibility of its refineries. The company's system can process a wide range of crude qualities (heavy sour, light/medium sour, etc.) and also shift product yields between light products and distillates based on market dynamics to enhance margin capture during volatile times. Notably, its feedstock flexibility and ability to maximize heavy sour crude processing are expected to act as a tailwind into the second quarter as well.

Image Source: Valero Energy Corporation

Favorable Industry Conditions Support Refining MarginsThe macroeconomic backdrop also remains favorable. Heavy sour crude grades usually trade at a discount to the West Texas Intermediate benchmark. Crude oil prices have also softened considerably in recent weeks, closing at approximately $68.55 per barrel on July 6. This is expected to benefit VLO as it could reduce feedstock costs for the refining player, improving refining economics and supporting better margins.

Beyond favorable feedstock costs, broader industry fundamentals remain constructive. Management noted that global refining capacity remains constrained, while the demand for refined products is resilient. Moreover, low product inventories in key markets are expected to support refining fundamentals, keeping margins steady.

Expansion Beyond Traditional RefiningValero has gained meaningful exposure to renewable fuels, providing an additional revenue stream. Its ownership in the Diamond Green Diesel joint venture provides VLO with approximately 1.2 billion gallons of renewable fuels production capacity per year. The recently completed Port Arthur sustainable aviation fuel (SAF) project can upgrade up to 50% of its current renewable diesel production capacity to SAF.

In addition, VLO’s ethanol operations are benefiting from increased international demand for the fuel. Management highlighted that many countries are increasing the amount of ethanol blended into gasoline to reduce emissions and costs. Global renewable fuel mandates are incentivizing producers to include low-carbon fuels in the transportation fuel mix, thereby driving demand for ethanol.

These initiatives position Valero to capitalize on the growth of cleaner transportation fuels in the long run.

Valuation SnapshotThe valuation snapshot indicates that investors are now willing to pay a premium for Valero Energy due to the company’s strong fundamentals. This is reflected in VLO’s trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 8.24x compared with the broader industry average of 5.5x. However, it is currently trading cheaper compared to its peers, PSX and MPC, which are trading at 12.69x and 11.18x trailing 12-month EV/EBITDA, respectively.

Image Source: Zacks Investment Research

Time to Bet on the Stock or Wait?Valero Energy is expected to benefit from its Gulf Coast refinery network, which provides it with feedstock flexibility and access to attractive export markets. Further, the operational flexibility of its refining system enables the company to shift product yields in response to changing market conditions, supporting profitability and improving margin capture.

Considering the backdrop, it might be wise for investors to wait for a more opportune moment to own VLO, currently carrying a Zacks Rank #3 (Hold), as the stock appears somewhat overvalued. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

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

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

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

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

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

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.

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 #3 (Hold) 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 167.4% for the current fiscal year.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $3.54 to $28.37 per share. VLO boasts an average earnings surprise of +28%.

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

Key Takeaways VLO's 29.9% debt-to-capitalization ratio is well below the industry average of 37.3%.Valero's conservative leverage helps reduce financing risk and improve resilience during weak margins.VLO's strong balance sheet supports growth investments, acquisitions and shareholder returns. Valero Energy Corporation (VLO - Free Report) operates a diversified portfolio spanning traditional refining, renewable diesel and ethanol operations. Driven by a robust network of 14 refineries and a combined throughput capacity of approximately 3 million barrels per day, Valero generates substantial cash flows from the production and marketing of transportation fuels. Supported by efficient operations, Valero has created a balance sheet that stands out among refining peers.

Valero maintains a debt-to-capitalization ratio of 29.9%, which is notably below the industry average of 37.3%. This conservative leverage profile reduces financing risk and limits interest-related obligations for the leading refiner. As a result, VLO is better positioned to navigate periods of weak refining margins or broader economic uncertainty.

A strong balance sheet enables Valero to invest with greater flexibility in growth projects, pursue strategic acquisitions and continue returning capital to shareholders. The leading refiner can fund opportunities without placing excessive pressure on its financial position. This financial strength enhances Valero’s long-term investment appeal and operational resilience.

Do PBF & DINO Have Strong Balance Sheets?PBF Energy Inc. (PBF - Free Report) and HF Sinclair Corporation (DINO - Free Report) are two other refining players with robust balance sheets. PBF maintains a debt-to-capitalization ratio of 33.1%, while DINO’s stands at 22.2%. This balance sheet strength shields PBF and DINO during economic downturns.

VLO’s Price Performance, Valuation & EstimatesValero shares have gained 92.9% over the past year compared with 38.2% growth registered by 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) ratio of 7.88X, above the broader industry average of 5.37X.

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

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

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

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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 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 ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

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

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

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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.

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.

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 #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. VLO has a Momentum Style Score of A, and shares are up 5.9% over the past four weeks.

For fiscal 2026, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $6.28 to $27.45 per share. VLO boasts an average earnings surprise of +28%.

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

Key Takeaways Cenovus and Valero Energy have surged over the past year, outpacing the industry's 28.1% return.Cenovus expects to beat its 2026 MEG synergy target while maintaining C$400M-plus by 2028.Valero benefits from Gulf Coast refineries, discounted heavy crude and refining flexibility. Cenovus Energy Inc. (CVE - Free Report) and Valero Energy Corporation (VLO - Free Report) are prominent names in the energy sector, but they operate in different segments of the industry.

Cenovus operates an integrated energy business, with upstream oil sands, conventional and offshore production, along with refining and upgrading assets in Canada and the United States, giving it exposure across the energy value chain. By contrast, Valero Energy is primarily a downstream refiner. It operates 14 North American refineries with nearly 3 million barrels per day of capacity and a high Nelson Complexity Index of 11.5, allowing it to process a wide range of crude into superior refined products.

Both stocks have delivered impressive returns over the past year. Cenovus shares have surged 81%, slightly ahead of Valero Energy’s 78.6% gain. Both companies have significantly outperformed the industry's 28.1% return during the same period.

One-Year Price ChartImage Source: Zacks Investment Research

While both companies’ share price performances have been strong, analyzing their core fundamentals provides a clearer picture of their long-term investment potential.

MEG Energy Acquisition Strengthens Cenovus' Growth ProfileA key catalyst for Cenovus has been the successful integration of MEG Energy, which it acquired in late 2025 for C$7.1 billion. The transaction added high-quality oil sands assets adjacent to the company's Christina Lake operations.

The company indicated that redevelopment wells at Christina Lake North have exceeded initial expectations. Consequently, Cenovus expects to surpass its original 2026 synergy target of C$150 million while maintaining its projection of generating annual synergies exceeding C$400 million by 2028.

Beyond cost savings, the acquisition expands production capacity, strengthens the company's reserve base and reinforces Cenovus' leadership position among Canada's largest oil sands producers.

Higher Crude Prices Could Drive Stronger Cash Flows for CenovusCrude oil prices have been volatile in recent weeks, reflecting shifting geopolitical developments in the Middle East. WTI crude briefly surged toward the $90-per-barrel level as concerns over potential supply disruptions and the temporary closure of the Strait of Hormuz added a significant geopolitical risk premium.

However, prices have since retreated following optimism that a U.S.-Iran agreement could ease tensions and facilitate the reopening of the vital shipping route, reducing fears of prolonged supply disruptions.

Despite the recent pullback, the current price environment remains supportive for Cenovus’ upstream operations. As one of Canada's largest oil sands producers, Cenovus derives a substantial portion of its production from heavy crude and bitumen blends. Although Western Canadian Select (WCS) typically trades at a discount to WTI due to quality and transportation constraints, higher global benchmark prices generally translate to stronger realized prices for WCS, supporting upstream revenues and cash flows.

Cenovus' integrated business model, which combines upstream production with downstream refining and marketing operations, helps moderate earnings volatility across commodity cycles. While refining margins may soften during periods of higher crude prices due to increased feedstock costs, stronger upstream profitability typically offsets this pressure, resulting in more stable overall cash flows and earnings.

Valero Continues to Benefit From Favorable Refining DynamicsVLO remains one of the industry's strongest independent refiners, supported by a strategically located refining system concentrated along the U.S. Gulf Coast. This geographic advantage provides access to competitively priced heavy crude supplies, extensive export infrastructure and attractive international product markets, strengthening the company's cost position and global reach.

The company continues to benefit from favorable heavy crude price differentials, driven by evolving global crude trade flows and geopolitical developments. Its Gulf Coast refineries are well-positioned to process discounted heavy sour crude from multiple sources, allowing Valero Energy to capitalize on feedstock cost advantages and support refining margins. Management has also highlighted that the company's broad crude sourcing capabilities and operational flexibility enable it to adapt quickly to changing market conditions.

Another competitive advantage lies in Valero Energy's highly sophisticated refining network. Its complex refineries can efficiently process lower-cost heavy sour crude into high-value refined products. In addition, the company has the flexibility to optimize its product slate by adjusting production across gasoline, diesel, jet fuel and other distillates in response to market demand, helping maximize refining profitability.

Industry fundamentals also remain supportive. The company believes global demand for refined products will remain strong, but many key markets are not building enough new refinery capacity to meet that growing demand. Ongoing geopolitical uncertainties, disciplined global refining capacity growth and relatively low fuel inventories in major consuming regions are expected to provide continued support for refining margins over the medium term.

Strong Balance Sheets Support Financial StabilityBoth Cenovus and Valero Energy maintain healthy balance sheets, positioning them to navigate periods of commodity price volatility. Cenovus currently carries a debt-to-capitalization ratio of 24.63%, comfortably below Valero's 29.91%.

Cenovus has also demonstrated a disciplined approach toward capital allocation. The company has increased its base dividend for five consecutive years, representing an annualized growth rate of roughly 55% since 2021. This consistent dividend growth underscores management's confidence in the company's long-term cash-generating ability.

Image Source: Zacks Investment Research

Cenovus Trades at a More Attractive ValuationFrom a valuation perspective, Cenovus appears less expensive than Valero. The stock currently trades at a trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) multiple of 6.21X compared with Valero Energy's 7.34X, suggesting that investors are paying a lower multiple for Cenovus' earnings potential.

Image Source: Zacks Investment Research

CVE vs. VLO: Which Stock Looks More Attractive?Cenovus and Valero Energy offer exposure to different areas of the energy industry, each with its investment strengths. Valero is well-positioned to benefit from supportive refining fundamentals, discounted heavy crude feedstocks and its operational flexibility, all of which could sustain healthy refining margins. Cenovus, meanwhile, offers a compelling combination of improving upstream fundamentals, a diversified integrated business model and a more attractive valuation.

Both stocks currently carry a Zacks Rank #3 (Hold). However, Cenovus' lower valuation, combined with its long-term growth opportunities and disciplined capital allocation strategy, makes it a better choice for investors at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks

Key Takeaways Valero's refining network spans the United States, Canada and the United Kingdom.Valero's complex Gulf Coast refining system and flexible operations support profitability amid volatility.Constrained refining capacity and low inventories are expected to support refining margins in the near term. Valero Energy (VLO - Free Report) is a well-known name in the refining space, with an extensive refining network across the United States, Canada and the UK. The company is also involved in the production of renewable fuels and ethanol. Valero’s strongest investment case lies in its highly complex refining system concentrated along the U.S. Gulf Coast and the operational flexibility of its refineries, as these factors enable it to sustain profitability across volatile market conditions.

Geopolitical conditions worldwide have caused significant volatility in global oil markets since the beginning of this year. Following recent talks between the United States and Iran in Switzerland, efforts are underway to facilitate the safe passage of vessels through the Strait of Hormuz. While this marks a positive step toward stabilizing energy markets, the conflict has already caused severe damage to several energy facilities across the Middle East, including refineries and LNG infrastructure. The global refining market was already operating under tight conditions before the conflict, with demand growth outpacing new refining capacity additions. The disruptions caused by the Middle East conflict have further amplified this trend.

Against this macroeconomic backdrop, VLO remains well positioned to generate sustained profits, backed by a favorable refining environment. The company’s coastal refinery network enables it to benefit from export access and exposure to global product markets. Moreover, constrained global refining capacity and low product inventories in key markets are expected to support refining fundamentals and keep margins steady in the near-term. Its Gulf Coast refining network benefits from growing product exports to high-demand growth markets, enabling the company to capture attractive margins and support long-term earnings growth.

Refining Players Expects to Benefit From Favorable Refining FundamentalsPar Pacific Holdings (PARR - Free Report) is a Houston-based refining player with a combined refining capacity of 219,000 barrels per day and operations spread across Hawaii and the Pacific Northwest. The company also operates 76 branded fuel retail sites, along with a logistics business segment. PARR owns extensive energy infrastructure, including storage and transportation assets.

PBF 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 1 million barrels per day and the ability to process a wide range of feedstocks.

VLO’s Price Performance, Valuation & EstimatesValero Energy’s shares have jumped 78.1% over the past year compared with the 40.1% 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 7.38X. This is above the broader industry average of 5.42X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for VLO’s 2026 earnings hasn’t seen any revisions over the past seven days.

Image Source: Zacks Investment Research

VLO, PARR and PBF each currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Valero Energy (VLO - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Valero Energy currently has an average brokerage recommendation (ABR) of 1.90, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 21 brokerage firms. An ABR of 1.90 approximates between Strong Buy and Buy.

Of the 21 recommendations that derive the current ABR, 12 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 57.1% and 4.8% of all recommendations.

Brokerage Recommendation Trends for VLO

Check price target & stock forecast for Valero Energy here>>>

While the ABR calls for buying Valero Energy, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in VLO?In terms of earnings estimate revisions for Valero Energy, the Zacks Consensus Estimate for the current year has increased 3.5% over the past month to $27.45.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Valero Energy. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Valero Energy may serve as a useful guide for investors.

Valero Energy (VLO - Free Report) ended the recent trading session at $236.30, demonstrating a -1.45% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.91%.

Heading into today, shares of the oil refiner had lost 5.52% over the past month, outpacing the Oils-Energy sector's loss of 7.57% and lagging the S&P 500's gain of 0.29%.

The upcoming earnings release of Valero Energy will be of great interest to investors. The company's earnings report is expected on July 30, 2026. The company is predicted to post an EPS of $7.45, indicating a 226.75% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.19 billion, up 21.08% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $27.45 per share and revenue of $133.66 billion, which would represent changes of +158.72% and +8.94%, respectively, from the prior year.

Any recent changes to analyst estimates for Valero Energy should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.53% higher. Valero Energy is holding a Zacks Rank of #2 (Buy) right now.

In the context of valuation, Valero Energy is at present trading with a Forward P/E ratio of 8.74. This valuation marks a premium compared to its industry average Forward P/E of 8.4.

One should further note that VLO currently holds a PEG ratio of 0.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 0.34.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 23, positioning it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

If you are reading the news and thinking the reopening of the Strait of Hormuz ends today’s oil problems, think again. Shipping has started to resume, but normal flows may take weeks or months to recover as markets work through disrupted logistics, damaged infrastructure and depleted inventories.

The Iran conflict disrupted a meaningful share of global oil flows, including production, refining and shipping activity. Even with the Strait moving back toward normal operations, oil markets may remain tight through the summer as traders watch weekly storage data and the pace of supply recovery.

Get ExxonMobil alerts:

Oil Prices Won't Stay Down LongWTI’s pullback looks encouraging for oil bears, with prices sharply below their 2026 highs as of mid-June. The caveat for oil bears is that the June price drop found support above $75, suggesting the market may not be ready to price in a full return to normal supply conditions. Catalysts will be dwindling storage levels, as reported weekly throughout the summer. Don’t forget, it's summer in the Northern Hemisphere, the most heavily populated half of the Earth and the most active oil-burning period.

The takeaway for investors is that energy companies, specifically producers and refiners, are well-positioned. Not only is demand high for their product, but high prices mean high margins. Add in the fact that the sector has invested heavily in efficiency and quality over the past few years, and the odds are high that windfall profits are on the way.

Energy-sector earnings estimates have moved sharply higher, but they may still leave room for upside if crude prices rebound and demand remains firm. Estimates, which have more than doubled over the trailing-90-day period, forecast more than 120% earnings per share (EPS) growth in the current quarter and 65% for the year. The likely outcome is that economic strength underpins sector outperformance in Q2, and the upcoming WTI price rebound underpins it in the longer term.

ExxonMobil: Highly Efficient Cash Flow and Capital Return MachineExxonMobil Today

$137.84 +0.04 (+0.03%)

As of 06/18/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$105.53▼

$176.41Dividend Yield2.99%

P/E Ratio23.25

Price Target$165.70

ExxonMobil NYSE: XOM is among the leading plays on high oil prices because it is the world’s largest integrated oil company, excluding China and Saudi Arabia, with major assets in critical energy-producing regions such as Guyana and the Permian Basin. Details that interest investors include its low break-even cost, which sets the stage for industry-leading free cash flow and capital returns. With oil prices high and expected to rise, it is well-positioned to benefit and offers investors the added benefit of diversification. The downstream and chemical segments provide some insulation from commodity price changes.

ExxonMobil’s dividend is not the highest among energy companies, but it is substantial, yielding nearly 3% as of mid-June. The payout is reliable, having been increased annually for more than 40 years, and the payout ratio remains manageable at around 69% of earnings. Looking ahead, the payout is likely to continue increasing at a modest single-digit rate; buybacks will catalyze share price gains.

Unlike most other energy companies, Exxon’s operational quality enabled it to sustain aggressive buybacks despite lower oil prices. The story today is that it can accelerate repurchases, while many of them will need to divert some of the windfall cash flow toward debt payments and reduction.

ConocoPhillips: A Pure Play on Producer MarginsConocoPhillips Today

COP

ConocoPhillips

$107.92 +0.19 (+0.17%)

As of 06/18/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$85.57▼

$135.87Dividend Yield3.11%

P/E Ratio18.32

Price Target$134.48

ConocoPhillips NYSE: COP shares qualities with ExxonMobil, including low-cost operations and ample cash flow. Among the differences is the business model, which is a pure-play on production. This sets the company up for more pronounced upside as oil prices spike, but also to volatility once they peak. The critical factor is the capital return, which includes a 3% dividend yield and share buybacks, likely to be accelerated in upcoming quarters.

ConocoPhillips' capital return is unique in that it is tied to free cash flow. In this scenario, the company will pay larger dividends and buy back more shares as oil prices rise. The silver lining is that deceleration is already expected, as any downticks in oil prices, margins, and cash flow will also be reflected in the payments. The difference today is that COP is shifting away from a variable payout structure toward more regular payments; these changes in cash flow will be reflected in buyback activity.

Valero Energy Cracks Down on Oil ProfitsValero Energy Today

VLO

Valero Energy

$236.50 +0.20 (+0.08%)

As of 06/18/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$130.78▼

$265.61Dividend Yield2.03%

P/E Ratio17.19

Price Target$245.59

Valero Energy NYSE: VLO is a top play on higher prices because it is a pure-play, independent refiner exposed to crack spreads rather than oil prices. While higher oil prices raise costs, higher realized profits make them moot. The takeaway for investors is that cash flow is growing in 2026, sufficient to enable capital returns while building cash on the balance sheet. Capital return includes dividends yielding around 2% and share buybacks, which reduced the count by an average of 5.1% on a trailing-12-month basis as of Q1.

Analysts' trends are bullish for these stocks. MarketBeat data reveals sufficient coverage for conviction, with an average of 23 covering each. They are collectively rated as Moderate Buys with a bullish bias and uptrends in their share prices. Valero has the tamest outlook, with consensus forecasting only modest upside, but its trend is toward the high end of the range, adding double digits, putting this market at a fresh all-time high. Exxon and ConocoPhillips have modest double-digit upside relative to their consensus figures, with high-end ranges in fresh all-time-high territory.

Should You Invest $1,000 in ExxonMobil Right Now?Before you consider ExxonMobil, you'll want to hear this.

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For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Valero Energy (VLO - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.

Valero Energy is one of 238 companies in the Oils-Energy group. The Oils-Energy group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Valero Energy is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for VLO's full-year earnings has moved 110.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, VLO has gained about 51.8% so far this year. At the same time, Oils-Energy stocks have gained an average of 21.9%. This shows that Valero Energy is outperforming its peers so far this year.

Natural Gas Services (NGS - Free Report) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24%.

For Natural Gas Services, the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Valero Energy is a member of the Oil and Gas - Refining and Marketing industry, which includes 17 individual companies and currently sits at #15 in the Zacks Industry Rank. On average, stocks in this group have gained 38.2% this year, meaning that VLO is performing better in terms of year-to-date returns.

On the other hand, Natural Gas Services belongs to the Oil and Gas - Mechanical and and Equipment industry. This 11-stock industry is currently ranked #109. The industry has moved +34% year to date.

Valero Energy and Natural Gas Services could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The 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 is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value 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 ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

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 like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

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

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.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

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

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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) San Antonio, TX-based Valero Energy Corporation is the largest independent refiner and marketer of petroleum products in the United States. The company was founded in 1980. It has a refining capacity of 3 million barrels per day across 14 refineries located throughout the United States, Canada and the United Kingdom.

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 B, forecasting year-over-year earnings growth of 149.9% for the current fiscal year.

For fiscal 2026, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $10.98 to $26.51 per share. VLO boasts an average earnings surprise of +28%.

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

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SAN ANTONIO--(BUSINESS WIRE)--Valero Energy Corporation (NYSE: VLO) announced today that it will host a conference call on Thursday, July 30, 2026, at 10:00 a.m. ET to discuss its financial and operational results for the second 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 Valero

Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. Valero operates 14 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.0 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.

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