The Zacks Oil and Gas – Refining & Marketing industry is positioned for continued strength, driven by reliable access to domestic and Canadian crude supplies, which is essential amid global oil flow disruptions. As of now, product inventories for diesel, gasoline, and jet fuel remain tight, fostering demand from sectors such as travel and freight. The industry recorded a remarkable performance, rising 72.3% over the past year, surpassing a 50.7% increase in the broader energy sector and a 33.2% gain in the S&P 500.
Refiners such as Valero Energy (VLO), Phillips 66 (PSX), and HF Sinclair (DINO) have emerged as attractive investment options. Valero operates 14 refineries with a throughput capacity of approximately 3 million barrels per day and is projected to see a 126.3% earnings growth by 2026. Phillips 66 experienced earnings of $207 million in Q1 2026, with a projected growth rate of 38.6%. HF Sinclair also shows promise with a market cap of nearly $13 billion and a projected 40.5% earnings growth in 2026.
The industry currently holds a Zacks Industry Rank of #7, placing it in the top 3% of 245 Zacks industries, reflecting strong near-term prospects. Analysts have increased their 2026 earnings estimates for the sector by 65.7% over the past year, indicating growing optimism for future performance.
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