Shares of HF Sinclair (DINO) have been strong performers lately, with the stock up 21.5% over the past month. The stock hit a new 52-week high of $82.05 in the previous session. HF Sinclair has gained 77.3% since the start of the year compared to the 23.3% move for the Zacks Oils-Energy sector and the 49% 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 May 1, 2026, HF Sinclair reported EPS of $0.69 versus consensus estimate of -$0.15 while it beat the consensus revenue estimate by 7.82%.
For the current fiscal year, HF Sinclair is expected to post earnings of $9.89 per share on $32.18 in revenues. This represents a 95.45% change in EPS on a 19.77% change in revenues. For the next fiscal year, the company is expected to earn $7.64 per share on $29.88 in revenues. This represents a year-over-year change of -22.77% and -7.16%, respectively.
Valuation Metrics
HF Sinclair may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
HF Sinclair has a Value Score of A. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 8.3X 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 8.1X versus its peer group's average of 10.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making HF Sinclair an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, HF Sinclair 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 HF Sinclair meets the list of requirements. Thus, it seems as though HF Sinclair shares could have potential in the weeks and months to come.
How Does DINO Stack Up to the Competition?
Shares of DINO 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 Valvoline (VVV). VVV has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Valvoline beat our consensus estimate by 17.14%, and for the current fiscal year, VVV is expected to post earnings of $1.75 per share on revenue of $2.05 billion.
Shares of Valvoline have gained 1.1% over the past month, and currently trade at a forward P/E of 22.03X and a P/CF of 15.11X.
The Oil and Gas - Refining and Marketing industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DINO and VVV, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).