Top 3 Refining and Marketing Stocks Worth Monitoring

The Zacks Oil and Gas – Refining & Marketing industry, consisting of 15 stocks, is currently ranked #197 out of 243 industries, placing it in the bottom 19%. Despite this bearish outlook, the industry has outperformed the broader Zacks Oil – Energy sector and the S&P 500 over the past year, gaining 24.7% compared to the sector’s 17% and the S&P 500’s 16.8%. Analysts have revised the industry’s earnings estimates down by 17.5% for 2026, signifying a dim near-term outlook.

Key players include Phillips 66, Marathon Petroleum, and Valero Energy. Phillips 66, with a refining capacity of nearly 2 million barrels per day, has an expected EPS growth rate of 25%, while Marathon Petroleum, valued at over $60 billion, projects an 18.8% earnings growth. Valero Energy, operating 15 refineries with a combined throughput of 3.2 million barrels per day, expects a 15.7% growth in earnings. The industry’s EV/EBITDA is currently at 5.05X, significantly lower than the S&P 500’s 17.20X.

Rising costs and regulatory pressures, along with demand uncertainty, present challenges for the industry. While operational flexibility and access to global markets offer some resilience, the increasing costs of maintenance and compliance remain critical issues for profitability.