Distillate Deficit: How DINO is Positioned to Profit From Strong Margins

HF Sinclair Corporation DINO is a well-known operator of refineries located in Wyoming, Oklahoma, Washington, New Mexico, Utah and Kansas. On its third-quarter earnings call, DINO expressed optimism about a favorable refining business environment in the near future.

The company also stated that strong global refining fundamentals are being supported by handsome utilization rates, low inventories of products and outages of refineries in Russia. To capitalize on this trend, HF Sinclair is focusing on producing distillates, representing diesel and jet fuel.

DINO highlighted that the supply of distillates is falling short of matching demand, aiding the prices of jet fuel and diesel. The company is well-positioned to gain since it is the leading producer of these fuels, depicting a strong outlook.

Like DINO, PBF & PSX May Also Gain

PBF Energy Inc. PBF and Phillips 66 PSX are also two leading energy companies with a strong refining footprint. With the refining business environment likely to be handsome, PBF and PSX are well poised to gain like DINO.

For 2026, both PBF and PSX have witnessed upward earnings estimate revisions over the past seven days.

DINO’s Price Performance, Valuation & Estimates

Shares of HF Sinclair have gained 30.9% over the past year compared with the 11.8% improvement of the composite stocks belonging to the industry.

From a valuation standpoint, DINO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.32X. This is above the broader industry average of 4.48X.

The Zacks Consensus Estimate for DINO’s 2025 earnings has seen upward revisions over the past 30 days.

HF Sinclair currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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