U.S. motorists are as soon as once more feeling the pinch on the pump, with the common retail worth of normal gasoline climbing above $4 per gallon. The U.S. Power Info Administration (EIA) not too long ago pegged the nationwide common at about $4.10 per gallon, underscoring the sharp rise in gas prices.
Whereas increased gasoline costs are a headwind for customers, they’ll create a positive backdrop for refiners when elevated product costs translate into stronger refining margins.
That makes the Zacks Oil and Gasoline–Refining and Advertising and marketing business significantly noteworthy. The group presently ranks within the high 9% of greater than 240 Zacks industries, with these 4 members holding spots on the coveted Zacks Rank #1 (Sturdy Purchase) listing.
Delek US Holdings – DK
Inventory Value: $67
Delek US Holdings DK) stands to profit by its refining operations and publicity to transportation fuels.
The corporate reported second-quarter 2026 adjusted EBITDA of $638.7 million, up 258% from $177.9 million in Q2 2205. Administration highlighted its excessive distillate yield, entry to advantaged crude, and enhancing refinery efficiency as positives within the present high-margin atmosphere.
DK additionally has the best annual dividend yield on the listing at a decent 1.5%.
Par Pacific Holdings – PARR
Inventory Value: $82
Par Pacific Holdings PARR) is having fun with a big raise from stronger refining margins throughout its geographically numerous refining system.
Second-quarter refining section adjusted EBITDA surged 409% to $552 million from $108.4 million a 12 months earlier, whereas adjusted gross margin jumped to $680.4 million from $231.8 million.
The corporate additionally accomplished most of its annual turnaround work, positioning its refineries to capitalize on the favorable margin backdrop as gasoline costs stay elevated.
It’s noteworthy that PARR has the most affordable ahead P/E a number of on the listing, buying and selling at simply 3X ahead earnings.
PBF Power – PBF
Inventory Value: $75
PBF Power (PBF) presents substantial publicity to enhancing gasoline and refined-product economics by its giant U.S. refining community.
Second-quarter 2026 revenue from operations climbed to $1.27 billion from simply $43 million a 12 months earlier, whereas adjusted revenue from operations reached $1.05 billion versus a loss within the prior-year interval.
PBF additionally captured robust refined-product margins from the return of its Martinez refinery to full operations in Might, a 157,000 barrel per day (bpd) facility that produces gasoline, jet gas, intermediates, and different petroleum merchandise for California and the Bay Space specifically.
Valero Power – VLO
Inventory Value: $347
Valero Power VLO) is probably the clearest large-cap beneficiary of sturdy transportation-fuel margins. Its refining section generated $4.5 billion in Q2 working revenue, up sharply from $1.3 billion a 12 months in the past, whereas refining throughput averaged roughly 3 million bpd.
Backside Line
Gasoline costs above $4 per gallon are painful for customers, however the atmosphere will be very favorable for these investing in refiners which might be in a position to seize robust margins on the fuels they produce.
With DK, PARR, PBF, and VLO carrying a Zacks Rank #1 (Sturdy Purchase) and working in one of many highest-ranked Zacks industries, these refining shares warrant consideration as elevated gas costs proceed to help downstream profitability and are resulting in a pointy uptick of their EPS revisions.
Zacks’ Analysis Chief Names “Inventory Most More likely to Double”
Our staff of consultants has simply launched the 5 shares with the best chance of gaining +100% or extra within the coming months. Of these 5, Director of Analysis Sheraz Mian highlights the one inventory set to climb highest.
This high decide is a little-known satellite-based communications agency. Area is projected to turn out to be a trillion greenback business, and this firm’s buyer base is rising quick. Analysts have forecasted a significant income breakout in 2025. In fact, all our elite picks aren’t winners however this one may far surpass earlier Zacks’ Shares Set to Double like Hims & Hers Well being, which shot up +209%.
Free: See Our High Inventory And 4 Runners Up
Valero Power Company (VLO) : Free Inventory Evaluation Report
Delek US Holdings, Inc. (DK) : Free Inventory Evaluation Report
PBF Power Inc. (PBF) : Free Inventory Evaluation Report
Par Pacific Holdings, Inc. (PARR) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
