The Trump administration announced plans to expand Delek US Holdings' Tyler refinery in Texas under the Defense Production Act to increase commercial and military-grade fuel production. The expansion aims to boost domestic fuel availability and energy security. Delek's shares have surged 172.4% year-to-date, outperforming peers and the broader energy sector. The company's Enterprise Optimization Plan targets $220 million in annual free cash flow improvements, while 2026 EPS estimates have risen 54% in 60 days, supported by strong refining margins and expanding midstream operations.

The article highlights how investors can use the Zacks Earnings ESP (Expected Surprise Prediction) filter to identify stocks likely to beat earnings expectations. It features Phillips 66 with a +13.53% ESP and Strong Buy rating ahead of October 28 earnings, and Sunrun with a +195.17% ESP and Hold rating before November 4 earnings, both showing strong potential for positive earnings surprises.

A $1,000 investment in Phillips 66 (PSX) made in October 2016 would be worth $3,698.42 as of October 14, 2026, representing a 269.84% gain. This outperforms the S&P 500's 266.01% return over the same period. Analysts maintain an Outperform rating, citing the company's diversified energy platform, strong refining execution, and midstream expansion, though risks from cyclicality and policy uncertainty remain.

Phillips 66 and other refiners are positioned to benefit from tight global refining capacity and low fuel inventories that are expected to sustain strong refining margins (crack spreads) potentially through 2027. Despite high crude oil input costs, the shortage of refining capacity globally should keep refining profits elevated. PSX shares have surged 123.7% over the past year, and its 2026 earnings estimates were recently revised upward.

Restaurant Technologies released its 2026 Impact Report highlighting significant sustainability achievements, including recycling 393 million pounds of used cooking oil in 2025, earning three ISCC certifications, and improving operational efficiency by delivering 6.5% more oil while reducing fleet mileage by 10.4% and emissions by 3.5%. The company also recognized employee engagement through workplace culture awards and the RTI Educational Foundation's $1 million in scholarships.

The article explains the Zacks Rank, a proprietary stock-rating model that uses earnings estimate revisions to help investors build winning portfolios. The system evaluates stocks based on four factors: Agreement, Magnitude, Upside, and Surprise, ranking them into five categories from Strong Buy to Strong Sell. Historical data shows Zacks Rank #1 portfolios have beaten the market in 26 of the last 32 years with average annual returns of +23.86%. Phillips 66 is highlighted as a recent Strong Buy addition with strong earnings growth expectations.

Phillips 66, Chevron, and Shell are increasingly deploying artificial intelligence and machine learning across their operations to improve refinery efficiency, optimize maintenance, and reduce costs. Phillips 66 has achieved over $1 per barrel in cost savings and targets $1.50 per barrel, with AI enabling problem-solving in days or weeks rather than months. While AI benefits remain partially unquantified, these initiatives are expected to strengthen long-term profitability and operational performance.

APA Corporation has returned 87.6% year-to-date, outperforming the Oils-Energy sector average of 37.5%, with a Zacks Rank #1 (Strong Buy) rating and improved earnings estimates. Phillips 66 has performed even better with 115.6% returns and a similar Strong Buy rating, driven by a 51% increase in consensus EPS estimates over three months.

The article highlights ConocoPhillips (COP) and Phillips 66 (PSX) as two oil and energy stocks with positive Earnings Surprise Prediction (ESP) ratings. Both stocks hold Zacks Rank #1 (Strong Buy) ratings and are expected to beat their upcoming earnings estimates, with COP showing a +15.93% ESP ahead of its November 5 earnings release and PSX showing a +14.60% ESP before its October 28 earnings report.

Phillips 66 stock declined 1.21% to $278.18 on October 9, 2026, underperforming the broader market despite the S&P 500 gaining 0.6%. The oil refiner is expected to report earnings on October 28 with projected EPS of $10.41 (up 313.1% YoY) and revenue of $34.31 billion (down 1.92% YoY). The stock has gained 8.93% over the past month and holds a Zacks Rank #1 (Strong Buy) rating with a Forward P/E of 9.71.

Valero Energy (VLO) trades at a premium valuation of 8.95x EV/EBITDA compared to the industry average of 6.07x, but analysts argue this is justified. The company benefits from access to cheaper heavy crude, constrained global refining capacity supporting margins, a strong balance sheet with low net debt, and upward earnings estimate revisions. VLO has gained 161.8% over the past year and currently holds a Zacks Rank #1 (Strong Buy) rating.

Phillips 66 (PSX), HF Sinclair (DINO), and Par Pacific Holdings (PARR) are well-positioned to benefit from strong fuel demand and tight global inventories despite elevated oil prices. PSX's diversified business model across refining, midstream, and chemicals provides stability and insulation from commodity volatility. All three refiners are experiencing healthy refining margins as fuel inventories remain low while demand stays robust.