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Chicago, IL – February 17, 2026 – Zacks Equity Research shares AECOM ACM as the Bull of the Day and Tractor Supply Company TSCO as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —Phillips 66 PSX, Valero Energy Corp. VLO and Par Pacific Holdings Inc. PARR.
Here is a synopsis of all three stocks:
AECOM recently raised full year earnings guidance as it enjoys a record backlog. This Zacks #1 Rank (Strong Buy) is expected to grow earnings by the double digits in fiscal 2026 and 2027.
AECOM is a global infrastructure leader. It solves clients’ complex challenges in water, environment, energy, transportation, and buildings. AECOM partners with public- and private-sector clients to create innovative and resilient solutions throughout the project lifecycle, from advisory, planning, design and engineering to program and construction management.
On Feb 9, 2026, AECOM reported its fiscal first quarter 2026 results and missed on the Zacks Consensus for the first time in seven quarters. The company reported $1.29 versus the Zacks Consensus of $1.41.
That was a miss of $0.12.
However, the backlog rose by 9%, to a record highlighted by some of the largest and most iconic projects in the world.
Some of those projects include AECOM’s selection as a preferred bidder on Scottish Water’s new multi-billion-dollar investment program to its selection as Delivery Partner to the Games Independent Infrastructure and Coordination Authority for the Brisbane 2032 Olympic and Paralympic Games.
It has a 1.5x book-to-burn ratio.
The company had outperformance in the design business in the first quarter, a lower than previously expected tax rate, and a record backlog and pipeline across the enterprise. It feels confident in its long-term outlook.
It raised its full year earnings outlook to a range of $5.85 and $6.05, compared to its prior guidance of $5.65 to $5.85.
This guidance was above the Zacks Consensus. As a result, the analysts have raised their earnings estimates.
Three estimates were raised in the last week, which has bumped the Zacks Consensus up to $5.98 from $5.65. That’s earnings growth of 13.7% as the company made just $5.26 last year.
Two estimates were also revised higher for fiscal 2027 in the last week as well. The 2027 Zacks Consensus has jumped to $6.59 from $6.18. That’s another 10.2% earnings growth.
AECOM also completed the review of strategic alternatives for its Construction Management business and has concluded that it will continue to own and operate the business.
It has a strong backlog and pipeline and has worked on important projects in its markets.
AECOM shares have fallen in the last six months.
The stock is cheap. It trades with a forward price-to-earnings (P/E) ratio of 14.8. A P/E of 15 or under usually indicates a stock is a value.
AECOM also has a price-to-sales (P/S) ratio of 0.7. A P/S ratio under 1.0 usually indicates a company is undervalued.
The company is shareholder friendly. In the fiscal first quarter, it returned more than $340 million to shareholders through repurchases and dividends in the quarter. The dividend is yielding 1.4%.
After the first quarter ended, the Board of Directors approved an increase in the share repurchase authorization to $1 billion.
For those investors looking for an infrastructure company with growing earnings that is also a value, they might want to keep AECOM on their short list.
Tractor Supply Company is seeing pressures on the rural consumer. This Zacks Rank #5 (Strong Sell) is expected to see single digit earnings growth this year.
Tractor Supply is the largest rural retailer in the United States, serving the needs of recreational farmers, ranchers, homeowners, gardeners and pet enthusiasts. In addition to Tractor Supply, it also owns Petsense by Tractor Supply, a pet specialty retailer, and Allivet, an online pet and animal pharmacy.
As of Dec 27, 2025, it operated 2,395 Tractor Supply stores in 49 states and 207 Petsense by Tractor Supply stores in 23 states.
On Jan 29, 2026, Tractor Supply reported its fiscal fourth quarter 2025 results and missed on the Zacks Consensus Estimate by $0.03. Earnings were $0.43 versus the Zacks Consensus of $0.46.
This was the second miss in the last four quarters.
Fourth Quarter sales rose 3.3% to $3.9 billion with the all-important comparable store sales staying positive, rising 0.3%. But this was slower growth than in the prior year’s fourth quarter, where comparable sales rose 0.6%.
There were positives and negatives in the comparables. The consumable, usable and edible products saw continued strength which was only partially offset by the lack of emergency-response-related demand and ongoing pressure in discretionary categories including big ticket products.
“Our fourth quarter results came in below our expectations and reflected a shift in consumer spending, with essential categories remaining resilient while discretionary demand moderated,” said Hal Lawton, CEO of Tractor Supply.
The company is looking for positive comparable sales in fiscal 2026 of 1% to 3%. Comparable sales were up 1.25% in fiscal 2025.
Net sales are expected to be up in the double digits, in the range of 4% to 6%.
Fiscal 2026 earnings are forecast to be between $2.13 and $2.23. This was under the Zacks Consensus Estimate.
As a result, the analysts cut their earnings estimates to get in line with the Company’s guidance.
Eleven estimates were cut for fiscal 2026 in the last 30 days, with one estimate even cut in the last seven days. The Zacks Consensus has fallen to $2.18 from $2.33.
That’s earnings growth of 5.8% as Tractor Supply made $2.06 in fiscal 2025.
Seven estimates were also cut for fiscal 2027 in the last month, with one cut in the last week as well. The fiscal 2027 Zacks Consensus Estimate has fallen to $2.41 from $2.60 in the last month.
That’s still earnings growth of 10.6%.
The Zacks Rank of Strong Sell occurs when analysts are in agreement and are cutting their earnings estimates. With Tractor Supply, no analysts are raising their estimates. They are only cutting.
Over the last month, Tractor Supply shares have been on a wild ride. If you’ve held on, they are up compared to the S&P 500
Over the last year, however, the shares have fallen 3.4% while the S&P 500 is up 11.8%.
Is TSCO a deal?
Tractor Supply trades with a forward price-to-earnings (P/E) ratio of 25.2. A P/E under 15 usually indicates a company is a value. It’s not a cheap stock.
Tractor Supply is shareholder friendly, however. It has a share repurchase program and expects to do $375 million to $450 million in fiscal 2026.
On Feb 11, 2026, Tractor Supply announced that its Board of Directors had increased its dividend by 4.3% year-over-year, or $0.04, to $0.96 per share annually.
This was the company’s 17th consecutive year of a dividend increase. It’s yielding 1.7% after the increase.
Tractor Supply’s fiscal 2026 outlook was disappointing. With all the questions about the consumer, investors might want to wait on the sidelines until the earnings estimates turn around.
West Texas Intermediate (WTI) oil price is currently hovering around $63 per barrel, according to data from Oilprice.com, which is significantly lower than a year ago. Phillips 66 is likely to gain from the softer crude pricing environment.
This is because Phillips 66 is a leading refining company. Hence, it is now able to purchase oil at a lower cost, enabling the production of end products. Crude prices are likely to remain soft in the coming days, as the U.S. Energy Information Administration (“EIA”) expects global oil inventories to continue increasing.
EIA projects the spot average West Texas Intermediate price for 2026 at $53.42 per barrel, lower than $65.40 per barrel in 2025. Thus, Phillips 66, which generates significant margin from its refining activities, is likely to benefit from lower oil prices.
Valero Energy Corp. and Par Pacific Holdings Inc., two other well-known refiners, are also likely to benefit from the ongoing relatively low oil prices.
Valero Energy, with 15 refineries, has a throughput capacity of 3.2 million barrels per day. VLO mentioned that its refining activities are capable of generating sufficient cash flows to support shareholders’ returns along with growth.
Par Pacific is mainly a refining company with the capacity to process 219,000 barrels of oil daily. Notably, having exposure to Canadian heavy oil, which is cheaper than lighter crude, Par Pacific is likely to have been enjoying a cost advantage.
Shares of PSX have gained 22% over the past year compared with the 25.2% rise of the composite stocks belonging to the industry.
From a valuation standpoint, PSX trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.03X. This is above the broader industry average of 5.06X.
The Zacks Consensus Estimate for PSX’s 2026 earnings has seen upward revisions over the past seven days.
PSX 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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