Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending and Conventional Blendstock for Oxygenate Blending gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils. It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company owns and operates renewable diesel and ethanol plants, as well as produces renewable diesel and naphtha under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distiller grains, syrup, and inedible distillers corn oil to animal feed customers. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.

Valero выглядит как зрелый нефтеперерабатывающий бизнес с сильной балансовой устойчивостью, но с заметно сжатой операционной рентабельностью относительно отрасли. С одной стороны, у компании низкий debt/equity 0.36, хороший current ratio 1.60 и приемлемый quick ratio 1.09, что снижает финансовые риски и поддерживает оценку. С другой стороны, маржинальность слабая: gross margin 4.43, operating margin 2.59 и net margin 1.91 существенно ниже медианы отрасли, а это ограничивает потенциал переоценки. Рентабельность капитала тоже не выглядит выдающейся: ROE 11.73, ROA 5.30 и ROI 8.51 ниже отраслевых ориентиров, хотя по абсолюту они уже лучше, чем в слабые кварталы прошлого года. Позитивом является улучшение прибыли: net income 1.13 млрд, operating income 1.58 млрд и EBITDA 2.35 млрд находятся на сильных уровнях, а выручка около 30.4 млрд остаётся стабильной. При этом динамика по годам показывает восстановление после более слабых периодов, что подтверждает циклический, но не структурно растущий характер бизнеса. Оценочные мультипликаторы выглядят неоднозначно: P/S 0.47 низкий и может указывать на относительную дешевизну, но P/E 26.79, P/B 2.33 и P/FCF 20.07 выше отраслевых медиан, то есть рынок уже платит за улучшение результатов. Это означает, что запас прочности по оценке ограничен, особенно если маржа не продолжит расширяться. Дивидендная доходность 0.50% заметно ниже прошлых уровней, поэтому дивидендный аргумент сейчас слабее, чем раньше. Рост net worth и устойчивость собственного капитала поддерживают инвестиционный профиль, но не компенсируют полностью слабые маржи и дорогие денежные потоки. В сумме фундаментал скорее оправдывает осторожный подход: бизнес качественный по балансу и прибыли, но текущая рыночная оценка уже учитывает часть улучшений, а операционная эффективность остаётся ниже среднеотраслевой.

Valero Energy Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, значительно упал. Рынок не поддерживает быков.

Medium index, significantly down. The market does not support the bulls.

Слабый индекс, незначительно упал

У Valero сильный баланс и прибыль, но слабые маржи и дорогие P/E, P/B и P/FCF ограничивают потенциал переоценки.

The S&P 500 Index ($SPX) (SPY) is up +0.58%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.91%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.64%. June E-mini S&P futures (ESM26) are up +0.70%, and June E-mini Nasdaq futures (NQM26) are up +0.79%.
Stocks are seeing support again today as reports circulate that an interim US-Iran peace agreement could be signed as early as this weekend, ending the military hostilities, reopening the Strait of Hormuz, and ending the US blockade on Iran and its oil exports. Negotiations would then begin on the more intractable issues, such as sanctions against Iran, the release of $24 billion of frozen Iranian assets, and the resolution of Iranian nuclear issues. However, Iran said its leaders still need to make a final decision on the proposed interim peace deal.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks surged on Thursday after President Trump said he canceled planned military strikes against Iran, citing "discussions" with Iranian leadership. He added that a "time and place of the signing" of a negotiated end to the war would "be announced shortly," and the US naval blockade of the Strait of Hormuz "will remain in full force and effect until this transaction is finalized."
WTI crude oil prices (CLN26) are down more than -3% today on hopes for a near-term US-Iran agreement and a reopening of the Strait of Hormuz.
In positive news for stocks, the University of Michigan’s June US Consumer Sentiment Index rose +4.1 to 48.9, which was stronger than expectations for a rise to 46.0. Also, the University of Michigan’s June 1-year inflation expectations rate eased to +4.6% from +4.8% in May, and was weaker than expectations of +4.9%. The June 5-10 year inflation expectations rate eased to +3.4% from +3.9% in May, weaker than expectations of +3.8%.
The markets are discounting a zero percent chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +1.9%. China's Shanghai Composite closed up +1.12%. Japan’s Nikkei-225 Stock Average closed up +2.81%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -3 ticks, and the 10-year T-note yield is up +1.6 bp at 4.477%. T-notes are seeing weakness today as the 10-year inflation expectations rate is up +0.1 bp at 2.306%, despite today’s drop in oil prices. The T-note market remains worried about inflation pressures, which are likely to remain sticky even after the Strait of Hormuz reopens. The T-note market has some carry-over weakness from Thursday, when demand was lackluster for the Treasury’s 30-year bond auction.
European government bond yields are trading lower. The 10-year German bund yield is down -3.3 bp at 2.999%. The 10-year UK gilt yield is down -6.6 bp at 4.839%.
On Thursday, the ECB, as expected, raised the deposit facility rate by +25 bp to 2.25% from 2.00% and said, "The outlook remains uncertain, with upside risks for inflation and downside risks for economic growth." Swaps are discounting a 37% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Space Exploration Technologies Corp (SPCX), doing business as SpaceX, started trading today near $160 per share, up nearly +20% from Thursday’s IPO of $135. The IPO was more than four times oversubscribed, indicating strong demand for the stock. A strong showing by SpaceX today would be positive for investor sentiment and could help the upcoming IPOs for AI companies Anthropic and OpenAI.
Space-linked stocks are trading lower despite the favorable SpaceX debut, with EchoStar (SATS) down more than -9%, and Rocket Lab (RKLB) down more than -7%.
Chip stocks recovered from early losses and are trading mostly higher. The iShares Semiconductor ETF (SOXX) is up +2.25% today, adding to Thursday’s sharp rally of +8.39%. Thursday’s rally was sparked by signs that AI spending is continuing after Oracle reported quarterly capital expenditures that were higher than expected, driven by increased data center spending. Chip leaders today include Arm Holdings (ARM)with a gain of more than +10%, and gains of more than +5% in Qualcomm (QCOM), AMD (AMD), and Intel (INTC).
Adobe (ADBE) is down more than -7% after CFO Dan Durn said he would leave the company on June 15, following news earlier this year that Adobe’s CEO would resign. The Adobe news put continued downward pressure on software stocks, which were undercut on Thursday by negative earnings news from Oracle (ORCL). Autodesk (ADSK) is down more than -3% and Intuit (INTU) is down by more than -2%.
Airline stocks are seeing continued support after oil prices today moved lower, adding to Thursday’s decline. United Airlines (UAL), American Airlines (AAL), and Southwest Airlines (LUV) are all up more than +3%.
Energy stocks and service providers are trading higher with today’s continued sell-off in crude oil prices. Occidental Petroleum (OXY), Valero (VLO), and Marathon Petroleum (MPC) are all up more than +2%.
Astera Labs (ALAB), CoreWeave (CRWV), Nebius Group (NBIS), Rocket Lab (RKLB), and Teradyn (TER) are seeing support today after Nasdaq announced on Thursday that those stocks will join the Nasdaq 100 Index, effective at the market open on June 22. Stocks leaving the Nasdaq 100 include Charter Communications (CHTR), Cognizant Technology Solutions (CTSH), Insmed (INSM), Verisk Analytics (VRSK), and Zscaler (ZS).
Travelers (TRV) is seeing downward pressure after Barclays cut its rating on the stock to underweight from equal-weight due to a downbeat outlook for profits in the property and casualty sector.
Earnings Reports(6/12/2026)
America's Car-Mart Inc/TX (CRMT), Atlantic International Corp (ATLN), Friedman Industries Inc (FRD), Liberty Live Holdings Inc (LLYVA), Pioneer Bancorp Inc/NY (PBFS), Richtech Robotics Inc (RR), Seneca Foods Corp (SENEB), Whitestone REIT (WSR).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks See Support from Hopes for a Near-term US-Iran Peace Agreement

Valero Energy VLO 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 high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero Energy’s refineries have a combined Nelson Complexity Index of 11.5, implying that they can process a wide variety of feedstock and convert it into higher-value products.
Over the past six months, VLO stock has gained 53.3%, outperforming the industry’s 38.8% growth. Its peers, Phillips 66 PSX and PBF Energy PBF, have grown 28.5% and 40.2%, respectively. 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
VLO’s Complex Coastal Refinery Network & Operational Flexibility Aids
Valero Energy presents a favorable investment case, particularly due to its high-complexity coastal refinery network and the operational flexibility of its refineries. Notably, its advantaged Gulf Coast refining footprint benefits from crude availability and exposure to export markets.
Management stated that during the first quarter, VLO’s Gulf Coast presence enabled it to take advantage of discounted heavy sour crude feedstocks, particularly following increased Venezuelan supply. With the onset of the conflict in the Middle East, these market dynamics became even more pronounced, as certain heavy crude grades, including Canadian heavy crude, began trading at deeper discounts. The company also added that it continues to optimize its crude slate at the Gulf Coast, enabling it to improve refining economics and support better margins.
The heavy sour discounts act as a tailwind for Valero’s business, particularly in the second quarter. Its highly complex refining system is capable of processing heavy sour grades into high-value refined products efficiently. Additionally, the flexibility of Valero’s refinery systems allows it to shift product yields between light products and distillates based on market signals to capture higher margins during volatile times. These factors enable the company to lower its input costs while capturing better refining margins by adjusting its refining mix.
Image Source: Valero Energy Corporation
Valero’s Shareholder Returns Framework and Balance Sheet Strength
Valero combines strong free cash flow generation with a disciplined capital allocation approach. The refining player returned $938 million to shareholders in the first quarter of 2026, implying a 59% payout ratio. Additionally, the company announced a 6% increase in its quarterly cash dividend to reward shareholders. Over the longer term, management has consistently delivered on its commitment to return cash to investors, achieving an average payout ratio of roughly 70% between 2015 and 2025. VLO also highlighted that its outstanding shares have declined by nearly 42% since 2014 through opportunistic share repurchases.
Valero’s capital return program is supported by its strong balance sheet. The company’s debt-to-capitalization ratio, net of cash, stood at 18% at the end of the first quarter. Furthermore, its cash and cash equivalents, combined with the liquidity available under its bank facilities, totaled approximately $11 billion at the end of the March quarter. VLO’s healthy financial position also allows it to return excess cash to investors through share buybacks. The company’s financial strength supports dividend growth and opportunistic buybacks, allowing it to deliver long-term shareholder value.
Valuation Snapshot
The 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 7.84x compared with the broader industry average of 5.87x. However, it is currently trading cheaper compared to its peers, PSX and PBF, which are trading at 12.93x and 9.88x 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 that allows it to take advantage of discounted heavy sour barrels. Further, the operational flexibility of its refineries enables it to convert cheaper feedstock into high-value products, thereby supporting profitability.
Given the current business environment and its disciplined shareholder return framework, investors should consider buying the VLO stock, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Valero Stock Surges 53.3% in Six Months: Should Investors Buy Now?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street Energy Select Sector SPDR ETF (Symbol: XLE) where we have detected an approximate $384.4 million dollar outflow -- that's a 1.0% decrease week over week (from 682,898,400 to 676,298,400). Among the largest underlying components of XLE, in trading today ConocoPhillips (Symbol: COP) is off about 0.3%, SLB Ltd (Symbol: SLB) is up about 0.3%, and Valero Energy Corp (Symbol: VLO) is higher by about 0.7%. For a complete list of holdings, visit the XLE Holdings page » The chart below shows the one year price performance of XLE, versus its 200 day moving average:
Looking at the chart above, XLE's low point in its 52 week range is $42.05 per share, with $63.46 as the 52 week high point — that compares with a last trade of $58.46. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further XLE Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Outflows: XLE, COP, SLB, VLO

For Immediate Release
Chicago, IL – June 12, 2026 – Zacks Equity Research shares Five Below FIVE as the Bull of the Day and Builders FirstSource BLDR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Valero Energy Corp. VLO and Marathon Petroleum Corp. MPC.
Here is a synopsis of all four stocks:
Five Below is a specialty value chain retailer that offers a wide range of premium-quality, trendy merchandise typically priced at $5 or less. The company primarily targets teenage and pre-teen shoppers with its products, which include certain brands and licensed merchandise.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with bullish EPS revisions present across the board.
Five Below Raises Guidance
Five Below shares have recently taken a hit following its latest earnings release after an initial hot start to 2026. Though notable, the negative action is likely partly a reflection of profit-taking after a strong run over the past year, with overall results strong and the company seeing positive EPS revisions in the days following.
The retailer posted a double-beat relative to our consensus expectations in the latest quarterly release, with revenues increasing nearly 32% alongside a 160% jump in adjusted EPS. The YoY sales growth rate was the highest we've seen from the company in years, with it also raising its FY26 EPS and sales guidance following the release.
Comparable store sales also increased by an impressive 22.7% YoY, telling us that its existing locations are seeing strong growth, with FIVE also opening 49 new stores throughout the quarter.
The growth picture remains solid, with earnings forecasted to grow 30% in its current fiscal year, with estimates for the upcoming year suggesting a further 11% improvement. Sales are expected to grow 14.3% in its current fiscal year and 9.6% in its next.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Five Below (FIVE) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Builders FirstSource is the largest U.S supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction, repair, and remodeling.
Analysts have taken a bearish stance on the company's EPS outlook amid a harsh operating environment, with the stock a Zacks Rank #5 (Strong Sell). The company also resides in the Zacks Building Products – Retail industry, which is currently ranked in the bottom 1% of all Zacks industries.
Let's take a closer look at what's going on.
BLDR Shares Struggle
Down nearly 30% in 2026, BLDR shares have faced pressure on the back of a challenging operating environment. Quarterly results have largely skewed sentiment, with the company falling short of the Zacks Consensus EPS estimate by double-digit percentages in back-to-back releases.
BLDR's YoY sales growth rates have been primarily negative in recent years, a major reason, alongside a challenging housing market, for the continued poor performance over recent years.
Margins have also been squeezed due to the less-than-ideal environment, resulting in a profitability crunch.
Bottom Line
Negative earnings estimate revisions, stemming from a challenging operating environment, paint a challenging picture for the company's shares in the near term.
Builders FirstSource is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
2 Refining Stocks with 35%+ Upside in 6 Months Despite High Oil Prices
The Iran war shock is driving high crude oil prices, with West Texas Intermediate ("WTI") crude currently trading at more than $85 per barrel. The U.S. Energy Information Administration ("EIA") in its latest short-term energy outlook projected WTI at $88.32 per barrel this year, higher than $65.40 last year.
Thus, with oil prices likely to remain elevated, refiners could see pressure on their overall business. However, that does not appear to be the case. Notably, over the past six months, leading refiners such as Valero Energy Corp. and Marathon Petroleum Corp. have each witnessed more than 35% gains despite a highly favorable crude pricing environment. Let's delve deeper.
Constrained Global Refining Capacity
The global refining capacity is constrained, and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests transportation, freight, agriculture and industrial activity are still holding up. As a result, with busy refineries and fuel not in abundant supply, refining margins for refiners are quite strong.
Thus, surprisingly, with crude prices likely to remain high, investors shouldn't allocate their money only to exploration and production companies but also to refining players like Valero Energyand Marathon Petroleum, even though high crude prices have been increasing refiners' input costs.
Time to Bet on 2 Refiners: VLO, MPC
Valero Energy expects to generate strong refining margins as the world has very little spare refining capacity, while inventories of refined products such as gasoline, jet fuel, and diesel are low. VLO will likely benefit from strong demand and tight supply, given its large, complex refineries with the capacity to process discounted heavy sour crude oil.
Over the past six months, Valero Energy, sporting a Zacks Rank #1 (Strong Buy), jumped 47.6%, outpacing the energy sector's 22.2% gain.
Marathon Petroleum runs refining systems that are the largest in the United States. With high utilization of refineries, Marathon Petroleum is well-positioned to capture almost all of the available profitable opportunities. In its first-quarter earnings transcript, the leading refining player mentioned that roughly 6% of the world's ability to produce finished fuels went offline due to the conflicts in the Middle East.
Investors should note that the company has the capability of processing cheaper crude from the United States and Canada to produce diesel and jet fuels that are in high demand. The stock surged 38% over the past six months and currently sports a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Five Below and Builders FirstSource have been highlighted as Zacks Bull and Bear of the Day

The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -1.62%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -1.87%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.98%. June E-mini S&P futures (ESM26) fell -1.62%, and June E-mini Nasdaq futures (NQM26) fell -2.07%.
Stock indexes sold off sharply on Wednesday, with the Dow Jones Industrials falling to a 2.5-week low. Rising geopolitical tensions in the Middle East lifted crude oil prices by more than +2% on Wednesday, sparking losses in stocks and bonds. Chipmakers, AI-infrastructure stocks, and the Magnificent Seven technology stocks all retreated on Wednesday, pressuring the overall market. Also, rising crude oil prices weighed on airline stocks, and trucking companies fell after Amazon expanded its LTL freight offering to all destinations in the US, including third-party warehouses, distribution centers, and retail partners.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks extended losses and crude oil prices added to gains on Wednesday when President Trump pledged to strike Iran again after accusing the country of delaying talks on an interim peace deal. Mr. Trump declined to say what targets US forces would hit but said: "We hit them hard yesterday, and we're going to hit them hard again today."
Stocks found some support on Wednesday after US May consumer prices came in as expected, easing inflation concerns. Also, sharp gains in crude oil prices on Wednesday lifted energy producers.
US May CPI rose +4.2% y/y, right on expectations and the fastest pace of increase in 3 years. May core CPI rose +2.9% y/y, right on expectations, and the fastest pace of increase in 7 months.
US MBA mortgage applications rose +10.8% in the week ended June 5, with the purchase mortgage sub-index up +7.3% and the refinancing mortgage sub-index up +15.3%. The average 30-year fixed rate mortgage rose +3 bp to 6.60% from 6.57% in the prior week.
WTI crude oil prices (CLN26) soared more than +2% on Wednesday after the US and Iran exchanged strikes overnight. The US said it had completed an operation that saw fighter jets strike Iranian air defenses, ground control stations, and radar sites near the Strait of Hormuz in retaliation for Iran shooting down a US Apache helicopter. In response, Iran launched missiles at four US military targets and fired drones at the main US naval base in the Middle East, located in Bahrain, and struck Ali Al Salem air base in Kuwait. The increase in tensions risks derailing peace talks between Iran and the US, keeping the Strait of Hormuz closed, and further tightening global energy supplies.
The markets are discounting a 3% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.
Overseas stock markets settled lower on Wednesday. The Euro Stoxx 50 fell to a 2.5-week low and closed down -0.66%. China's Shanghai Composite closed down -0.42%. Japan's Nikkei Stock Average closed down -1.89%.
Interest Rates
September 10-year T-notes (ZNU6) on Wednesday closed down -2.5 ticks, and the 10-year T-note yield rose +2.3 bp to 4.540%. T-notes were under pressure on Wednesday after WTI crude oil prices surged more than +2%, which raised inflation expectations. Losses in T-notes were limited after the US May CPI report rose as expected, easing inflation concerns. Also, strong demand for the Treasury’s $39 billion auction of 10-year T-notes was positive for T-notes, as the auction had a bid-to-cover ratio of 2.57, well above the 10-auction average of 2.47.
European government bond yields moved higher on Wednesday. The 10-year German Bund yield climbed to a 2.5-week high of 3.088% and finished up +3.4 bp to 3.076%. The 10-year UK gilt yield rose +2.8 bp to 4.931%.
Swaps are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on Thursday.
US Stock Movers
Chipmakers and AI-infrastructure stocks moved lower on Wednesday and led the broader market lower. ON Semiconductor (ON) and Qualcomm (QCOM) closed down more than -6%, and Marvell Technology (MRVL), ARM Holdings Plc (ARM), and Western Digital (WDC) closed down more than -5%. Also, Broadcom (AVGO), Advanced Micro Devices (AMD), and Micron Technology (MU) closed down more than -4%, and NXP Semiconductors NV (NXPI), Microchip Technology (MCHP), and Seagate Technology Holdings Plc (STX) closed down more than -3%.
Most of the Magnificent Seven technology stocks settled lower on Wednesday, weighing on the overall market. Nvidia (NVDA) and Tesla (TSLA) closed down more than -3%, and Alphabet (GOOGL), Amazon.com (AMZN), and Meta Platforms (META) closed down more than -2%. Also, Microsoft (MSFT) closed down more than -1%. However, Apple (AAPL) bucked the trend, closing up 0.35%.
Airline stocks and cruise line operators sold off on Wednesday as WTI crude oil rose more than 2%, boosting fuel costs and dampening the companies’ profitability prospects. Alaska Air Group (ALK) closed down more than -7%, and United Airlines Holdings (UAL), Carnival (CCL), and Norwegian Cruise Line Holdings (NCLH) closed down more than -6%. Also, Delta Air Lines (DAL) and Royal Caribbean Cruises (RCL) closed down more than -5%, and American Airlines Group (AAL) and Southwest Airlines (LUV) closed down more than -4%.
Trucking companies were under pressure on Wednesday after Amazon expanded its LTL freight offering to all destinations in the US, including third-party warehouses, distribution centers, and retail partners. FedEx Freight Holding Co (FDXF) closed down more than -6%, and Old Dominion Freight Line (ODFL) and XPO Inc (XPO) closed down more than -5%. Also, ArcBest (ARCB) closed down more than -4%, and Saia Inc (SAIA) and CH Robinson Worldwide (CHRW) closed down more than -3%. In addition, JB Hunt Transport Services (JBHT) closed down more than -2%.
Energy producers and service providers moved higher on Wednesday as WTI crude oil rose more than +2%. Devon Energy (DVN) closed up more than +5%, and APA Corp (APA) closed up more than +3%. Also, ConocoPhillips (COP) closed up more than +2%, and Marathon Petroleum (MPC), Phillips 66 (PSX), Chevron (CVX), Diamondback Energy (FANG), Exxon Mobil (XOM), and Valero Energy (VLO) closed up more than +1%.
Super Micro Computer (SMCI) closed down more than -27% to lead losers in the S&P 500 after saying it plans $7 billion in equity and equity-linked financing transactions to fund component purchases.
Dianthus Therapeutics (DNTH) closed down more than -9% after peer developer Sanofi halted a late-stage trial of an experimental therapy for a rare autoimmune disorder, citing efficacy concerns.
Summit Therapeutics (SMMT) closed down more than -8% after announcing it had commenced an underwritten public offering of $500 million of shares of its common stock.
Cracker Barrel Old Country Store (CBRL) closed up more than +22% after raising its full-year revenue forecast to $3.27 billion to $3.30 billion from a previous estimate of $3.24 billion to $3.27 billion, stronger than the consensus of $3.25 billion.
Casey’s General Stores (CASY) closed up more than +20% to lead gainers in the S&P 500 after reporting Q4 revenue of $4.57 billion, above the consensus of $4.32 billion.
Live Nation Entertainment (LYV) rose more than +2% after Morgan Stanley raised its price target on the stock to $200 from $185, saying concerns around the impact of regulation on resale ticket pricing are overstated.
Illumina (ILMN) closed up more than +1% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $185.
Earnings Reports(6/11/2026)
Adobe Inc (ADBE), Lennar Corp (LEN), RH (RH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Sharply Lower on Escalating Middle East Tensions

The S&P 500 Index ($SPX) (SPY) today is down -0.61%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.88%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.80%. June E-mini S&P futures (ESM26) are down -0.71%, and June E-mini Nasdaq futures (NQM26) are down -0.97%.
Stock indexes are sliding for a second day today, as chipmakers and AI-infrastructure stocks retreat. Also, rising crude oil prices are weighing on airline stocks, and trucking companies are under pressure today after Amazon expanded its LTL freight offering to all destinations in the US, including third-party warehouses, distribution centers, and retail partners.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks found some support today after US May consumer prices came in as expected, easing inflation concerns. Also, gains in crude oil prices today are lifting energy producers.
US May CPI rose +4.2% y/y, right on expectations and the fastest pace of increase in 3 years. May core CPI rose +2.9% y/y, right on expectations, and the fastest pace of increase in 7 months.
US MBA mortgage applications rose +10.8% in the week ended June 5, with the purchase mortgage sub-index up +7.3% and the refinancing mortgage sub-index up +15.3%. The average 30-year fixed rate mortgage rose +3 bp to 6.60% from 6.57% in the prior week.
WTI crude oil prices (CLN26) are up more than +1% today after the US and Iran exchanged strikes overnight. The US said it had completed an operation that saw fighter jets strike Iranian air defenses, ground control stations, and radar sites near the Strait of Hormuz in retaliation for Iran shooting down a US Apache helicopter. In response, Iran launched missiles at four US military targets and fired drones at the main US naval base in the Middle East, located in Bahrain, and struck Ali Al Salem air base in Kuwait. Gains in crude prices accelerated today when President Trump said that Iran has taken too long to make a deal and that they will now have to “pay the price,” fueling concerns that the US may escalate military attacks on Iran.
The markets are discounting a 0% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.
Overseas stock markets are mixed today. The Euro Stoxx 50 recovered from a 2.5-week low and is up +0.03%. China's Shanghai Composite closed down -0.42%. Japan's Nikkei Stock Average closed down -1.89%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -1 tick, and the 10-year T-note yield is up +0.2 bp to 4.519%. T-notes are under slight pressure today after a +1% jump in WTI crude oil, which has raised inflation expectations. Supply pressures are also weighing on T-note prices as the Treasury will auction $39 billion of 10-year T-notes later today. T-notes recovered from their worst levels after the US May CPI report rose as expected, easing inflation concerns.
European government bond yields are moving higher today. The 10-year German Bund yield climbed to a 2.5-week high of 3.088% and is up +1.7 bp to 3.060%. The 10-year UK gilt yield is up +1.7 bp to 4.920%.
Swaps are discounting a 100% chance of a +25 bp ECB rate hike at its next policy meeting on Thursday.
US Stock Movers
Chipmakers and AI-infrastructure stocks are leading the broader market lower today. ON Semiconductor (ON) is down more than -5%, and Qualcomm (QCOM) is down more than -5% to lead losers in the Nasdaq 100. Also, Western Digital (WDC) and Broadcom (AVGO) are down more than -4%, andAdvanced Micro Devices (AMD), NXP Semiconductors NV (NXPI), ARM Holdings Plc (ARM), and Microchip Technology (MCHP) are down more than -3%. In addition, Nvidia (NVDA), Marvell Technology (MRVL), and Micron Technology (MU) are down more than -2%.
Trucking companies are under pressure today after Amazon expanded its LTL freight offering to all destinations in the US, including third-party warehouses, distribution centers, and retail partners. Old Dominion Freight Line (ODFL) is down more than -4%, and FedEx Freight Holding Co (FDXF), ArcBest (ARCB), and XPO Inc (XPO) are down more than -3%. Also, Saia Inc (SAIA) is down more than -2%, and CH Robinson Worldwide (CHRW) and JB Hunt Transport Services (JBHT) are down more than -2%.
Airline stocks and cruise line operators are falling today, as WTI crude oil is up more than 1%, which is boosting fuel costs and dampening profitability prospects. United Airlines Holdings (UAL), Alaska Air Group (ALK), and Carnival (CCL) are down more than -4%, and American Airlines Group (AAL), Delta Air Lines (DAL), Royal Caribbean Cruises (RCL), and Norwegian Cruise Line Holdings (NCLH) are down more than -3%. Also, Southwest Airlines (LUV) is down more than -2%.
Energy producers and service providers are moving higher today, with WTI crude oil up more than +1%. Devon Energy (DVN) is up more than +5%, and APA Corp (APA) is up more than +3%. Also, ConocoPhillips (COP), Marathon Petroleum (MPC), Phillips 66 (PSX), and Chevron (CVX) are up more than +2%. In addition, Diamondback Energy (FANG), Exxon Mobil (XOM), Halliburton (HAL), and Valero Energy (VLO) are up more than +1%.
Super Micro Computer (SMCI) is down more than -17% to lead losers in the S&P 500 after saying it plans $7 billion in equity and equity-linked financing transactions to fund component purchases.
Dianthus Therapeutics (DNTH) is down more than -13% after peer developer Sanofi halted a late-stage trial of an experimental therapy for a rare autoimmune disorder, citing efficacy concerns.
Summit Therapeutics (SMMT) is down more than -7% after announcing it had commenced an underwritten public offering of $500 million of shares of its common stock.
Cracker Barrel Old Country Store (CBRL) is up more than +27% after raising its full-year revenue forecast to $3.27 billion to $3.30 billion from a previous estimate of $3.24 billion to $3.27 billion, stronger than the consensus of $3.25 billion.
Casey’s General Stores (CASY) is up more than +14% to lead gainers in the S&P 500 after reporting Q4 revenue of $4.57 billion, above the consensus of $4.32 billion.
Illumina (ILMN) is up more than +3% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $185.
Hinge Health (HNGE) is up more than +2% after raising its full-year revenue forecast to $818 million to $824 million from a previous estimate of $798 million to $804 million.
Earnings Reports(6/10/2026)
Chewy Inc (CHWY), Core & Main Inc (CNM), Oracle Corp (ORCL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Resume Decline as Chipmakers and AI Companies Fall

The S&P 500 Index ($SPX) (SPY) today is down -0.28%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.38%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.28%. June E-mini S&P futures (ESM26) are down -0.25%, and June E-mini Nasdaq futures (NQM26) are down -0.22%.
Stock indexes are sliding today, led by weakness in technology stocks, as investors rotate out of the sector, weighing on the broader market. Also, trucking companies are under pressure today after Amazon expanded its LTL freight offering to all destinations in the US, including third-party warehouses, distribution centers, and retail partners. However, stock indexes recovered from their worst levels after US May consumer prices came in as expected, easing inflation concerns.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
US May CPI rose +4.2% y/y, right on expectations and the fastest pace of increase in 3 years. May core CPI rose +2.9% y/y, right on expectations, and the fastest pace of increase in 7 months.
US MBA mortgage applications rose +10.8% in the week ended June 5, with the purchase mortgage sub-index up +7.3% and the refinancing mortgage sub-index up +15.3%. The average 30-year fixed rate mortgage rose +3 bp to 6.60% from 6.57% in the prior week.
WTI crude oil prices (CLN26) are up more than +1% today after the US and Iran exchanged strikes overnight. The US said it had completed an operation that saw fighter jets strike Iranian air defenses, ground control stations, and radar sites near the Strait of Hormuz in retaliation for Iran shooting down a US Apache helicopter. In response, Iran launched missiles at four US military targets and fired drones at the main US naval base in the Middle East, located in Bahrain, and struck Ali Al Salem air base in Kuwait. Losses in crude prices accelerated today when President Trump said that Iran has taken too long to make a deal and that they will now have to “pay the price,” fueling concerns that the US may escalate military attacks on Iran.
The markets are discounting a 0% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 2.5-week low and is down -0.34%. China's Shanghai Composite closed down -0.42%. Japan's Nikkei Stock Average closed down -1.89%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -2 ticks, and the 10-year T-note yield is up +0.6 bp to 4.523%. T-notes are under pressure today after a +1% jump in WTI crude oil, which has raised inflation expectations. Supply pressures are also weighing on T-note prices as the Treasury will auction $39 billion of 10-year T-notes later today.
Today’s stock weakness has boosted some safe-haven demand for government debt securities and is limiting losses in T-notes. Also, today’s as-expected US May CPI report limited the downside in T-notes.
European government bond yields are moving higher today. The 10-year German Bund yield climbed to a 2.5-week high of 3.088% and is up +2.7 bp to 3.070%. The 10-year UK gilt yield is up +2.1 bp to 4.924%.
Swaps are discounting a 100% chance of a +25 bp ECB rate hike at its next policy meeting on Thursday.
US Stock Movers
The weakness in chipmakers and AI-infrastructure stocks is leading the broader market lower today. Western Digital (WDC) and Broadcom (AVGO) are down more than -4%, and Seagate Technology Holdings Plc (STX) is down more than -3%. Also, Micron Technology (MU) is down more than -2%, and Nvidia (NVDA), Microchip Technology (MCHP), NXP Semiconductors NV (NXPI), and Qualcomm (QCOM) are down more than -1%.
Trucking companies are under pressure today after Amazon expanded its LTL freight offering to all destinations in the US, including third-party warehouses, distribution centers, and retail partners. ArcBest (ARCB) is down more than -7%, and Old Dominion Freight Line (ODFL) is down more than -6% to lead losers in the Nasdaq 100. Also, Saia Inc (SAIA) and XPO Inc (XPO) are down more than -5%. In addition, FedEx Freight Holding Co (FDXF), CH Robinson Worldwide (CHRW), and JB Hunt Transport Services (JBHT) are down more than -2%.
Airline stocks and cruise line operators are falling today, as WTI crude oil is up more than 1%, which boosts fuel costs and dampens profitability prospects. United Airlines Holdings (UAL) and Alaska Air Group (ALK) are down more than -3%, and American Airlines Group (AAL), Delta Air Lines (DAL), and Royal Caribbean Cruises (RCL) are down more than -2%. Also, Southwest Airlines (LUV), Carnival (CCL), and Norwegian Cruise Line Holdings (NCLH) are down more than -1%.
Energy producers and service providers are moving higher today, with WTI crude oil up more than +1%. Devon Energy (DVN) is up more than +4%, and APA Corp (APA) is up more than +3%. Also, ConocoPhillips (COP) is up more than +2%, and Marathon Petroleum (MPC), Phillips 66 (PSX), Chevron (CVX), Halliburton (HAL), and Valero Energy (VLO) are up more than +1%.
Dianthus Therapeutics (DNTH) is down more than -13% after peer developer Sanofi halted a late-stage trial of an experimental therapy for a rare autoimmune disorder, citing efficacy concerns.
Super Micro Computer (SMCI) is down more than -12% to lead losers in the S&P 500 after saying it plans $7 billion in equity and equity-linked financing transactions to fund component purchases.
Summit Therapeutics (SMMT) is down more than -3% after announcing it had commenced an underwritten public offering of $500 million of shares of its common stock.
Cracker Barrel Old Country Store (CBRL) is up more than +31% after raising its full-year revenue forecast to $3.27 billion to $3.30 billion from a previous estimate of $3.24 billion to $3.27 billion, stronger than the consensus of $3.25 billion.
Casey’s General Stores (CASY) is up more than +14% to lead gainers in the S&P 500 after reporting Q4 revenue of $4.57 billion, above the consensus of $4.32 billion.
Illumina (ILMN) is up more than +2% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $185.
Hinge Health (HNGE) is up more than +2% after raising its full-year revenue forecast to $818 million to $824 million from a previous estimate of $798 million to $804 million.
Earnings Reports(6/10/2026)
Chewy Inc (CHWY), Core & Main Inc (CNM), Oracle Corp (ORCL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Fall on Weakness in Tech and Trucking Companies

The Iran war shock is driving high crude oil prices, with West Texas Intermediate (“WTI”) crude currently trading at more than $85 per barrel. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $88.32 per barrel this year, higher than $65.40 last year.
Thus, with oil prices likely to remain elevated, refiners could see pressure on their overall business. However, that does not appear to be the case. Notably, over the past six months, leading refiners such as Valero Energy Corporation VLO and Marathon Petroleum Corp. MPC have each witnessed more than 35% gains despite a highly favorable crude pricing environment. Let’s delve deeper.
Six-Month Price Chart
Image Source: Zacks Investment Research
Constrained Global Refining Capacity
The global refining capacity is constrained, and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests transportation, freight, agriculture and industrial activity are still holding up. As a result, with busy refineries and fuel not in abundant supply, refining margins for refiners are quite strong.
Thus, surprisingly, with crude prices likely to remain high, investors shouldn’t allocate their money only to exploration and production companies but also to refining players like Valero Energyand Marathon Petroleum, even though high crude prices have been increasing refiners’ input costs.
Time to Bet on 2 Refiners: VLO, MPC
Valero Energy expects to generate strong refining margins as the world has very little spare refining capacity, while inventories of refined products such as gasoline, jet fuel, and diesel are low. VLO will likely benefit from strong demand and tight supply, given its large, complex refineries with the capacity to process discounted heavy sour crude oil.
Over the past six months, Valero Energy, sporting a Zacks Rank #1 (Strong Buy), jumped 47.6%, outpacing the energy sector’s 22.2% gain.
Marathon Petroleum runs refining systems that are the largest in the United States. With high utilization of refineries, Marathon Petroleum is well-positioned to capture almost all of the available profitable opportunities. In its first-quarter earnings transcript, the leading refining player mentioned that roughly 6% of the world’s ability to produce finished fuels went offline due to the conflicts in the Middle East.
Investors should note that the company has the capability of processing cheaper crude from the United States and Canada to produce diesel and jet fuels that are in high demand. The stock surged 38% over the past six months and currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Refining Stocks With 35%+ Upside in 6 Months Despite High Oil Prices

Marathon Petroleum Corporation MPC shares have surged in recent months and remain near their 52-week high, currently trading at $258.15 after a modest pullback from their 52-week high of $272.46 achieved earlier this month, making the stock one of the strongest performers in the energy sector.
Image Source: Zacks Investment Research
While some investors may hesitate to buy a stock after a significant rally, strong companies often reach new highs because their fundamentals continue to improve. In Marathon Petroleum’s case, rising refining margins, growing midstream earnings and a shareholder-friendly capital-allocation strategy continue to support the investment case.
The key question for investors is whether MPC’s recent rally reflects peak optimism or whether the company has room to deliver additional gains.
MPC's Integrated Business Model Remains a Strength
Marathon Petroleum operates one of the largest refining systems in the United States, with approximately 3 million barrels per day of refining capacity. In addition to its refining operations, the company owns a significant stake in MPLX LP MPLX, one of North America’s largest midstream operators.
This integrated structure provides multiple sources of earnings. While refining profits can fluctuate with market conditions, MPLX generates stable fee-based cash flows that help reduce earnings volatility and strengthen the company’s financial profile.
The benefits of this model were evident in the first quarter of 2026. MPC generated adjusted EBITDA of $2.8 billion. The Refining & Marketing (R&M) segment contributed $1.4 billion, nearly triple the year-ago level, supported by stronger refining margins and efficient operations. Meanwhile, MPLX LP continued to provide stable cash-flow support through its diversified midstream asset base.
Strong Refining Fundamentals Drive Growth
The refining environment has improved considerably over the past year. Global supply disruptions, geopolitical uncertainty and resilient fuel demand have supported stronger crack spreads and higher refining margins.
These favorable conditions were reflected in MPC’s first-quarter results. R&M’s adjusted EBITDA rose to $1.4 billion from $489 million in the year-earlier period. The segmental margin increased to $17.74 per barrel from $13.38.
These results came despite the company completing roughly 40% of its planned annual turnaround activity during the quarter. Marathon Petroleum maintained an 89% crude utilization rate while delivering strong operational performance.
Management also highlighted healthy demand trends across gasoline, diesel and jet fuel markets. With its large refining footprint and integrated logistics network, Marathon Petroleum appears well-positioned to benefit from favorable market conditions through the remainder of 2026.
Growth Projects Support Future Earnings
Although the company remains disciplined with capital spending, it continues to invest in projects that offer attractive returns.
Marathon Petroleum recently completed its Garyville jet fuel project and is advancing additional projects at its El Paso and Robinson facilities. These investments are expected to improve product flexibility, enhance margins and better align production with market demand.
At the same time, MPLX continues to expand its natural gas and NGL infrastructure, particularly in the Permian Basin. These projects should support long-term cash-flow growth and increase distributions flowing back to Marathon Petroleum.
Together, refining optimization initiatives and midstream expansion projects provide a clear path for earnings growth.
Shareholder Returns Remain Major Attraction
One of the strongest aspects of the MPC investment story is its commitment to returning capital to shareholders.
In the first quarter, the company returned approximately $1 billion through dividends and share repurchases. Management also approved an additional $5-billion share-repurchase authorization, demonstrating confidence in the company’s outlook.
The growing cash distributions received from MPLX further strengthen Marathon Petroleum’s ability to maintain and expand shareholder returns. Management expects MPLX’s growth strategy to support double-digit annual distribution growth to MPC over the next two years, creating another source of value for investors.
Valuation Still Looks Reasonable
Despite trading near its 52-week high, Marathon Petroleum trades at a forward P/E of 9.05X, below the Oil-Energy sector average of 11.41X and between peer valuations, trading above Valero Energy VLO but below PBF Energy PBF, underscoring its attractive valuation relative to its earnings potential.
Image Source: Zacks Investment Research
Unlike many momentum-driven stocks, MPC’s recent gains have been supported by improving fundamentals, rising earnings expectations and favorable industry conditions. Its exposure to both refining and midstream operations also helps reduce risks compared with many pure-play refining peers.
Analysts have become increasingly optimistic about the company’s outlook. Over the past 60 days, the consensus estimate for 2026 earnings has risen from $21.49 per share to $30.05, while the 2027 estimate has increased from $20.36 to $26.55.
Image Source: Zacks Investment Research
Market sentiment remains favorable as well. MPC has an average brokerage rating of 1.87 on a 1-to-5 scale, where 1 represents Strong Buy. Of the 19 analysts covering the stock, nine rate it as a Strong Buy and three rate it as a Buy. Similar to Valero Energy and PBF Energy, Marathon Petroleum is benefiting from a favorable refining environment, but its integrated business model provides an additional source of earnings stability through MPLX.
Image Source: Zacks Investment Research
What's the Right Move for Investors: Buy or Hold?
Marathon Petroleum's strong first-quarter performance, improving refining margins, expanding MPLX cash flows and disciplined capital-allocation strategy reinforce its long-term investment appeal. The company continues to benefit from resilient fuel demand, favorable market conditions and a portfolio of high-return growth projects.
Although MPC is trading near its 52-week high, the stock’s strength appears to be driven by improving fundamentals rather than excessive optimism. With attractive valuation, robust shareholder returns and multiple growth catalysts in place, Marathon Petroleum remains well-positioned to create value for investors. Compared with peers such as Valero Energy and PBF Energy, MPC offers investors a more diversified earnings stream, supported by refining and midstream operations.
Marathon Petroleum currently flaunts a Zacks Rank #1 (Strong Buy), reflecting positive earnings estimate revisions and improving business momentum. For investors seeking exposure to a high-quality downstream energy company, MPC appears to remain a compelling buy despite trading near its 52-week high. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MPLX LP (MPLX) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Marathon Petroleum Stock Near Its 52-Week High: Should You Still Buy?

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today June 10th:
Powell Industries POWL: This metal-working shop which support the petrochemical facilities, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 19.9% over the last 60 days.
Powell Industries, Inc. Price and Consensus
Powell Industries has a PEG ratio of 1.26 compared with 1.44 for the industry. The company possesses a Growth Score of A.
Powell Industries, Inc. PEG Ratio (TTM)
The ODP Corporation ODP: This company which is a provider of business services, products and digital workplace technology solutions to small, medium and enterprise businesses, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days.
The ODP Corporation Price and Consensus
The ODP has a PEG ratio of 0.46 compared with 0.96 for the industry. The company possesses a Growth Score of B.
The ODP Corporation PEG Ratio (TTM)
PDD Holdings Inc. PDD: This company which provides an e-commerce platform allowing users to participate in group buying deals, primarily through Tencent's Wechat app, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 43.8% over the last 60 days.
PDD Holdings Inc. Sponsored ADR Price and Consensus
PDD Holdings has a PEG ratio of 0.23 compared with 2.23 for the industry. The company possesses a Growth Score of B.
PDD Holdings Inc. Sponsored ADR PEG Ratio (TTM)
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The ODP Corporation (ODP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	26.79 14.77
Price/Sales	0.47 1.48
P/B	2.33 1.53
P/FCF	20.07 10.45

Indicator	TTM Median
ROE	11.73 15.20
ROA	5.30 6.69
ROI	8.51 9.04
Net Worth	56.86 1.82
Quick Ratio	1.09 1.07
Current Ratio	1.60 1.27

Indicator	TTM Median
Net Profit Margin	1.91 14.29
Operating Margin	2.59 20.93
Gross Margin	4.43 48.18
Return on tangible equity	5.57 17.48

Indicator	TTM Median
EPS	3.82 0.41
EPS Forecast	3.22 0.36
Revenue	30.37B 220.00M
Gross Profit	1.90B —
EBITDA	2.35B —

Valero Energy Corporation

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue