The Zacks Oils and Energy sector has been one of the best places to park cash in 2022, up more than 40% and crushing the general market’s performance.
A company residing in the realm, HF Sinclair DINO, is on deck to unveil Q3 earnings on November 7th, before market open.
HF Sinclair, an energy company, produces and markets light products such as gasoline, diesel fuel, jet fuel, renewable diesel, and other specialty products.
Based in Dallas, the company operates and owns refineries across several states, including Kansas, Oklahoma, New Mexico, Wyoming, and Utah.
Currently, the company sports the highly-coveted Zacks Rank #1 (Strong Buy) paired with an overall VGM Score of an A.
How does everything else stack up? Let’s find out.
Share Performance & Valuation
DINO shares have been scorching hot in 2022, up nearly 100% and leaving the S&P 500’s performance in the dust.
Image Source: Zacks Investment Research
Over the last three months, the strong price action of DINO shares hasn’t slowed, tacking on more than 35% in value and again outperforming the S&P 500.
Image Source: Zacks Investment Research
The bulls have roamed free in energy stocks all year long, and HF Sinclair has been no exception.
Shares trade at a 0.4X forward price-to-sales ratio, precisely at its five-year median value and representing a 53% discount relative to its Zacks sector average of 0.7X.
The company sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have primarily been bullish in their earnings outlook, with three positive earnings estimate revisions hitting the tape over the last several months.
Look out – the Zacks Consensus EPS Estimate of $4.20 indicates a Y/Y uptick in earnings of more than 220%.
Image Source: Zacks Investment Research
The company’s top-line also looks to expand substantially; the Zacks Consensus Sales estimate of $8.5 billion suggests an 80% improvement from year-ago quarterly sales of $4.7 billion.
Quarterly Performance & Market Reactions
DINO has posted strong earnings results as of late, exceeding both revenue and earnings estimates in back-to-back quarters.
Just in its latest print, HF Sinclair registered a 24% EPS surprise paired with a 40% sales beat. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, it’s worth noting that the market has been impressed with the company’s quarterly results, with shares moving upward following each of its last two prints.
Putting Everything Together
DINO shares have been a bright spot in a dim market in 2022, crushing the S&P 500’s performance.
The company’s forward price-to-sales ratio resides just at its five-year median and below its Zacks sector average.
Analysts have primarily been bullish in their earnings outlook, and estimates indicate substantial Y/Y upticks in both revenue and earnings.
The company has repeatedly exceeded quarterly estimates as of late, and the market cheered on its previous two prints.
Heading into the release, HF Sinclair DINO sports a Zacks Rank #1 (Strong Buy) with an Earnings ESP Score of 1.2%.
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HF Sinclair Corporation (DINO): Free Stock Analysis Report
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