Core Viewpoint - Delek Logistics Partners, L.P. (DKL) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which significantly influences stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Delek Logistics Partners indicate an improvement in the company's underlying business, suggesting potential for stock price appreciation [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2024, Delek Logistics Partners is expected to earn $3.41 per share, reflecting a 5.6% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 4.3%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Delek Logistics Partners to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10].

Core Insights - DKL Logistics LP is expanding its operations through acquisitions and diversifying its sales base, which is expected to increase EBITDA by at least 14% [2][6][7] Company Profile - DKL Logistics LP, based in Brentwood, Tennessee, is a publicly traded master limited partnership formed in 2012 by Delek US Holdings, Inc. to manage logistics and marketing assets for crude oil and refined products [3] - The company operates primarily in the southeastern United States and west Texas, supporting Delek's refining operations [3] Holdings and Operations - DKL's operations include gathering, transporting, and storing crude oil, as well as marketing and distributing refined products [4] - The company has a significant infrastructure, including a 200-mile gathering system and over 800 miles of transportation pipelines [5] Acquisitions and Expansion - On August 6, 2024, DKL announced the acquisition of Delek US's interest in the Wink to Webster pipeline, which is expected to enhance asset quality and diversify operations [6] - The acquisition is projected to increase third-party EBITDA contribution from 50% to 64% and diversify EBITDA sources across various segments [6][7] Financial Performance - DKL's Q2 2024 saw record EBITDA of $102.4 million, a 10% increase from Q2 2023, with a 9.7% growth in EBITDA and 11% growth in distributable cash flow [13][14] - The company reported a net income of $73.71 million for Q1-2 2024, reflecting a 6.43% increase year-over-year [14] Dividends - DKL recently increased its distribution from $1.07 to $1.09, marking the 46th consecutive quarterly increase, yielding 11.18% as of August 28, 2024 [15][16] Analyst Ratings and Price Targets - DKL received upgrades from Citigroup and Truist, with price targets of $45 and $46, respectively, indicating potential upside from the current price of $39 [28][29][31] Valuations - DKL is currently trading at a low Price/DCF ratio of 6.66X, significantly below midstream averages, suggesting potential undervaluation [32][34]

Core Insights - Three stocks with strong income characteristics and buy rankings are highlighted for investors to consider on August 26th [1] Group 1: Medical Properties Trust (MPW) - Medical Properties Trust is a self-advised real estate investment trust focused on acquiring and developing net-leased healthcare facilities [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.1% over the last 60 days [1] - The company has a dividend yield of 13.30%, significantly higher than the industry average of 4.54% [2] Group 2: NexPoint Real Estate Finance (NREF) - NexPoint Real Estate Finance is a real estate investment trust that invests in first mortgage loans, mezzanine loans, preferred equity, and alternative structured financings in commercial real estate [3] - The Zacks Consensus Estimate for its current year earnings has increased nearly 18.63% over the last 60 days [3] - The company has a dividend yield of 12.80%, compared to the industry average of 11.79% [4] Group 3: Delek Logistics Partners (DKL) - Delek Logistics Partners owns, operates, acquires, and constructs logistics and marketing assets for crude oil and refined products [4] - The Zacks Consensus Estimate for its current year earnings has increased nearly 4.3% over the last 60 days [4] - The company has a dividend yield of 11.2%, which is higher than the industry average of 7.2% [4]

Group 1: Stock Recommendations - Sumitomo Mitsui Financial Group, Inc. (SMFG) has a Zacks Rank 1 and a 19% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Qifu Technology, Inc. (QFIN) also holds a Zacks Rank 1 with a 10.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Delek Logistics Partners, LP (DKL) maintains a Zacks Rank 1 and has seen a 4.3% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] Group 2: Valuation Metrics - Sumitomo Mitsui Financial Group has a price-to-earnings ratio (P/E) of 12.12 compared to 22.66 for the S&P, with a Value Score of B [1] - Qifu Technology has a P/E ratio of 5.39 compared to 22.66 for the S&P, and possesses a Value Score of A [2] - Delek Logistics Partners has a P/E ratio of 11.32 compared to 22.66 for the S&P, with a Value Score of A [3]

Core Insights - The article emphasizes the importance of a proven ranking system that focuses on earnings estimates and revisions to identify winning stocks [1] - Value investing is highlighted as a popular and successful strategy across various market conditions, relying on traditional analysis of key valuation metrics [2] - The Zacks Rank and Style Scores system are tools for investors to identify high-quality value stocks, particularly those with high Zacks Ranks and "A" grades for Value [3] Company Analysis: Delek Logistics Partners (DKL) - Delek Logistics Partners currently holds a Zacks Rank of 2 (Buy) and an "A" grade for Value, indicating strong potential [4] - The stock has a P/E ratio of 9.90, significantly lower than the industry average of 12.01, suggesting it may be undervalued [4] - DKL's Forward P/E has fluctuated between 9.66 and 14.55 over the past 52 weeks, with a median of 11.73, indicating variability in market perception [4] - The company has a P/CF ratio of 7.66, which is also below the industry average of 8.63, further supporting the notion of undervaluation [5] - Over the past 12 months, DKL's P/CF has ranged from 6.84 to 9.30, with a median of 7.72, reflecting its cash flow strength [5] - Overall, the metrics suggest that Delek Logistics Partners is likely undervalued and stands out as one of the strongest value stocks in the market [6]

Core Viewpoint - Delek Logistics Partners has consistently increased its cash distributions to investors, showcasing a strong financial foundation and growth potential in the midstream sector [2][11]. Group 1: Financial Performance - The company recently achieved its 46th consecutive quarterly distribution increase, with a nearly 2% raise pushing its yield close to 11% [2]. - Delek Logistics ended the second quarter with a distribution coverage ratio of 1.32 times, indicating a healthy ability to cover its distribution payments [5][7]. - The leverage ratio improved to 3.81 at the end of the second quarter, down from 4.34 at the end of the previous year [6]. Group 2: Growth Strategy - The company has been diversifying its operations by acquiring assets to support third-party customers, with expectations that earnings from its parent will decline from 50% to 36% by the second half of next year [4]. - In 2022, Delek Logistics acquired 3Bear Energy for $624.7 million to enhance third-party revenue and growth [7]. - Recent acquisitions include the Wink to Webster Pipeline System and H2O Midstream for $230 million, aimed at expanding midstream services in the Permian Basin [8][9]. Group 3: Future Outlook - The company plans to invest in organic expansion projects, including a new natural gas processing plant in the Delaware Basin [9]. - Continued growth-focused investments are expected to generate incremental cash flow, allowing for further increases in distribution payments [10][11].

Delek Logistics Partners, L.P. (DKL) has been beaten down lately with too much selling pressure. While the stock has lost 6.8% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. Guide to Identifying Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a moment ...

Delek Logistics Partners, L.P. (DKL) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35721 DELEK LOGISTICS PARTNERS, LP (Exact name of registrant as specified in its charter) Delaware 45-5379027 (State or other jur ...

Delek Logistics Partners, LP Common Units (NYSE:DKL) Q2 2024 Earnings Conference Call August 6, 2024 1:30 PM ET Company Participants Robert Wright - Deputy Chief Financial Officer Avigal Soreq - President Reuven Spiegel - Executive Vice President & Chief Financial Officer Odely Sakazi - Senior Vice President, Delek Logistics Conference Call Participants Neal Dingmann - Truist Securities Doug Irwin - Citi Operator Thank you for standing by. My name is Joel, and I will be your conference operator today. At th ...