Group 1: Trade and Market Impact - Investors showed relief on April 22 due to signs of easing trade tensions, with hints from President Trump and Treasury Secretary Scott Bessent about potential reductions in the 145% tariffs on Chinese goods [1] - The positive developments regarding tariffs have led to a bullish market trend since April 22, with expectations of further gains as more tariff-related good news is anticipated [2] Group 2: Stock Screening and Recommendations - A screening process has been designed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks, incorporating the price/sales ratio as a complementary valuation metric [3] - The screening criteria include a net upgrade in ratings, percentage change in earnings estimates, price-to-sales ratio, stock price above $5, average daily volume over 100,000 shares, and market capitalization in the top 3000 [4][5] Group 3: Featured Stocks - Avis Budget operates as a leading vehicle rental operator with a fleet of nearly 695,000 vehicles, benefiting from strong demand in North America [6] - ABM Industries provides integrated facility solutions and has a strong earnings surprise history, with an average beat of 9.6% over the last four quarters [7] - CVR Energy focuses on renewable energy and petroleum refining, committed to developing renewable biofuels [9] - Delek US Holdings is an independent refiner with significant competitive advantages in the Permian Basin, achieving an average earnings beat of 22.3% [10][11] - Asbury Automotive Group's diversified product mix and e-commerce platform, Clicklane, are driving growth and improving its risk profile [11][12]

Core Viewpoint - Valero Energy (VLO) is expected to report a significant decline in quarterly earnings and revenues, with analysts predicting earnings of $0.43 per share, an 88.7% decrease year-over-year, and revenues of $28.45 billion, a 10.4% decrease from the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate for the quarter has been revised upward by 8.3%, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly correlated with short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Total operating revenues - Renewable diesel' at $635.55 million, reflecting a 55% decrease from the prior-year quarter [5]. - The 'Total operating revenues - Ethanol' is projected to be $997.56 million, indicating a 9.6% decline from the year-ago quarter [5]. - 'Total operating revenues - Refining' is expected to be $27.22 billion, showing a year-over-year change of -9.7% [6]. Refining Margins - The consensus for 'U.S. Mid-Continent region - Refining margin per barrel of throughput' is $8.98, down from $13.20 in the same quarter last year [6]. - For the 'U.S. West Coast region - Refining margin per barrel of throughput', the estimate is $11.51, compared to $12.62 a year ago [7]. - The 'U.S. Gulf Coast region - Refining margin per barrel of throughput' is projected at $8.87, down from $14.11 in the same quarter last year [7]. Throughput Volumes - Analysts predict 'Refining - Total Throughput volumes per day' to be 2,824.11 thousand barrels of oil, an increase from 2,760 thousand barrels of oil year-over-year [8]. - 'U.S. Gulf Coast region - Throughput volumes per day' is expected to reach 1,732.09 thousand barrels of oil, up from 1,594 thousand barrels of oil in the same quarter last year [8]. - 'U.S. Mid-Continent region - Throughput volumes per day' is forecasted at 426.77 thousand barrels of oil, down from 452 thousand barrels of oil a year ago [9]. Regional Insights - 'North Atlantic region - Throughput volumes per day' is estimated at 465.99 thousand barrels of oil, slightly up from 449 thousand barrels of oil in the previous year [10]. - The estimated 'North Atlantic region - Refining margin per barrel of throughput' is $11.82, down from $15.67 in the same quarter last year [10]. Stock Performance - Valero Energy shares have returned -17.5% over the past month, underperforming the Zacks S&P 500 composite, which saw a -8.9% change [11].

Larger Cap Refiners: What Are We Focused On Into EPS Results? In this note we update estimates for the US Larger Cap Refiners (MPC, VLO, PSX, DINO) ahead of 1Q25 earnings. Heading into the quarter, we are mindful of the tougher near-term setup where we note (a) softer global oil demand expectations, (b) tighter crude differentials with Brent-WTI tightening to $3/bbl (vs $5/bbl historical average) and WTI-WCS tightening to $9/bbl (vs $15/bbl historical average), and (c) depressed Renewable Diesel earnings. T ...

Company Overview - CVR Energy (CVI) is expected to report a year-over-year decline in earnings due to lower revenues, with a projected quarterly loss of $0.90 per share, representing a change of -2350% [3][12] - Revenues are anticipated to be $1.62 billion, down 13.1% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 186.67% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for CVR matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [10][11] Historical Performance - In the last reported quarter, CVR was expected to post a loss of $0.65 per share but actually reported a loss of $0.13, resulting in a surprise of +80% [12] - Over the past four quarters, CVR has beaten consensus EPS estimates two times [13] Market Sentiment - The stock may experience upward movement if the actual results exceed expectations, while a miss could lead to a decline [2] - The combination of a Zacks Rank of 3 (Hold) and an Earnings ESP of 0% suggests uncertainty regarding the likelihood of an earnings beat [11][18] Industry Comparison - Phillips 66 (PSX), another player in the Oil and Gas - Refining and Marketing industry, is expected to report earnings of $0.42 per share, reflecting a year-over-year change of -77.9% [17] - Phillips 66's revenues are projected to be $30.67 billion, down 15.8% from the previous year [17]

Group 1: Company Overview - CrossAmerica Partners (CAPL) is a notable stock within the Oils-Energy sector, which consists of 246 companies and ranks 13 in the Zacks Sector Rank [2] - CAPL currently holds a Zacks Rank of 1 (Strong Buy), indicating a favorable earnings outlook [3] Group 2: Performance Metrics - Over the past quarter, the Zacks Consensus Estimate for CAPL's full-year earnings has increased by 72.7%, reflecting improved analyst sentiment [4] - Year-to-date, CAPL has gained approximately 4.7%, while the Oils-Energy sector has seen an average return of -7%, demonstrating CAPL's outperformance [4] Group 3: Industry Context - CAPL is part of the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, which includes 6 stocks and ranks 53 in the Zacks Industry Rank; this group has gained an average of 0.7% this year [6] - In contrast, National Fuel Gas (NFG), another stock in the Oils-Energy sector, has a year-to-date return of 30.1% and is part of the Oil and Gas - Integrated - United States industry, which has declined by -8.6% this year [5][7]

Company Performance - Western Midstream's stock closed at $38.13, reflecting a +1.98% increase, outperforming the S&P 500's gain of 0.13% on the same day [1] - The stock has experienced a decline of 10.64% over the past month, which is worse than the Oils-Energy sector's loss of 9.42% and the S&P 500's loss of 6.3% [1] Financial Projections - The upcoming earnings per share (EPS) for Western Midstream is projected to be $0.83, indicating a significant decrease of 43.54% from the same quarter last year [2] - Revenue is expected to reach $945.11 million, showing a growth of 6.46% compared to the corresponding quarter of the previous year [2] Annual Estimates - For the entire year, the Zacks Consensus Estimates forecast earnings of $3.42 per share and revenue of $3.79 billion, reflecting changes of -14.93% and +5.21% respectively from the previous year [3] - Recent analyst estimate revisions suggest a positive outlook for the company's business performance and profit potential [3] Valuation Metrics - Western Midstream's Forward P/E ratio stands at 10.94, which is below the industry average Forward P/E of 19.1, indicating a valuation discount [6] - The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, to which Western Midstream belongs, has a Zacks Industry Rank of 52, placing it in the top 21% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Western Midstream at 3 (Hold) [5] - The Zacks Consensus EPS estimate has increased by 0.24% in the past month, reflecting a slight positive sentiment among analysts [5]

Billionaire investor Carl Icahn just reminded Wall Street who the original energy bull is.In a series of filings this month, the legendary activist investor disclosed a buying spree in CVR Energy, Inc. CVI – snapping up more than 1.5 million shares worth over $27 million throughout April. CVR Energy is Icahn's second-largest holding, just behind his own firm, Icahn Enterprises IEP.With the ink barely dry on the latest Schedule 13D/A, the filing reveals Icahn now owns 70.1 million shares.Starting from April ...

Core Points - Electra Battery Materials Corporation has successfully closed the final tranche of an oversubscribed non-brokered private placement, raising approximately US$3.5 million [1][2] - The offering consisted of 3,125,000 units issued at a price of US$1.12 per unit, with each unit comprising one common share and one transferable common share purchase warrant [2] - The net proceeds from the offering will be utilized to advance the company's Refinery project in Temiskaming Shores, Ontario, and for general corporate purposes [2] Offering Details - The offering was conducted in two tranches, with the first tranche closing on April 3, 2025, and the second on April 14, 2025 [2] - Each warrant allows the holder to purchase one common share at a price of US$1.40 for a period of eighteen months following the issue date [2] - The company paid US$219,447 in cash finders fees and issued 183,333 non-transferrable finders warrants to eligible finders [5] Related Party Transactions - Key executives and directors of the company participated in the offering, constituting a "related party transaction" under applicable securities laws [3][4] - The company did not file a material change report prior to closing due to the timing of insider participation [4] - As the transaction does not exceed 25% of the company's market capitalization, no formal valuation or minority shareholder approval is required [4] Securities Regulations - The common shares and warrants issued under the offering are not subject to a hold period under Canadian securities laws [6] - Securities issued to insiders will be subject to a statutory hold period of four months and one day from the date of issuance [6] - The offering remains subject to final approval from the TSX Venture Exchange [6] Company Overview - Electra Battery Materials is focused on advancing North America's critical minerals supply chain for lithium-ion batteries [8] - The company is developing North America's only cobalt sulfate refinery and has plans for nickel refining and battery recycling [8] - Growth projects include integrating black mass recycling and exploring opportunities for cobalt and nickel production in North America [8]

Group 1 - Targa Resources, Inc. (TRGP) shares increased by 8.2% to $173.65, following a significant trading volume, contrasting with an 11.4% loss over the past four weeks [1] - The rise in Targa's stock price is attributed to the increase in natural gas prices, which followed the upward trend in oil prices, and a broader market rally due to President Trump's tariff policy changes [2] - The company is expected to report quarterly earnings of $2.04 per share, reflecting a year-over-year increase of 67.2%, with revenues projected at $5.58 billion, up 22.4% from the previous year [3] Group 2 - The consensus EPS estimate for Targa Resources has been revised 4.1% higher in the last 30 days, indicating a positive trend that typically leads to price appreciation [4] - Targa Resources is classified under the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, with a current Zacks Rank of 3 (Hold) [4] - Global Partners LP (GLP), another company in the same industry, saw its stock rise by 8% but has a negative return of -17.9% over the past month [4]

Core Viewpoint - Elliott Investment Management argues that Phillips 66 has consistently underperformed compared to its industry peers, with shares lagging behind Valero Energy and Marathon Petroleum by -138% and -188% over the past decade, respectively [1][10]. Group 1: Streamline 66 Plan - Elliott proposes a three-part "Streamline 66" plan aimed at increasing Phillips' stock price to over $200 per share, which includes simplifying the portfolio, reviewing refinery operations, and enhancing Board oversight [2][12]. - The plan emphasizes the need to divest non-core assets, such as the midstream business, which could be valued at over $40 billion, to focus on improving refining operations [21]. Group 2: Board Accountability and Governance - Elliott advocates for all directors to commit to a one-year term and stand for election at each Annual Meeting, enhancing accountability and governance [3][31]. - The current staggered Board structure limits accountability, and past proposals to address this have failed due to the high voting threshold required [32][34]. Group 3: Director Nominees - Elliott has nominated four highly qualified director candidates to bring necessary experience and perspectives to the Board, including individuals with significant backgrounds in refining and energy sectors [6][29]. - The nominees are expected to enhance Board independence and oversight, which is crucial for restoring investor trust and improving company performance [30]. Group 4: Historical Context and Comparisons - Elliott draws parallels with Marathon Petroleum, which successfully implemented changes after Elliott's engagement, resulting in a ~150% relative outperformance in share price [11]. - The letter highlights that Phillips 66's management has resisted necessary changes and has not prioritized shareholder value, leading to ongoing underperformance [9][25].