Delek US Holdings surged 11.6% to close at $71.47 on Friday, nearing a 52-week high, after the refining company reported second-quarter earnings that far exceeded expectations.
The stock, selected by ProPicks AI in March, has gained 89.84% since the AI model’s recommendation, bringing its total return to nearly 146% over the past year. The company’s Q2 adjusted earnings per share of $5.48 handily beat the consensus estimate of $2.21, marking a 148% upside surprise.
Delek’s quarterly EBITDA rose 279% quarter-over-quarter to $638.7 million, driven by soaring refining margins, record performance from its logistics division, and the completion of major upgrades at its Big Spring facility. The company’s enterprise optimization plan targets at least $200 million in annual cost savings, while its logistics arm guided for 2026 earnings of $520–$560 million.
The rally follows a broader surge in energy stocks, with refining margins supported by tight global fuel supply and record diesel crack spreads exceeding $102 per barrel. Analyst price targets for Delek average around $40, with some firms setting targets as high as $53.
Other energy names also posted gains on Friday, including CVR Energy (NYSE: CVI), which rose 10.3%, and Ramaco Resources (NASDAQGS: METC), which added 6.7% after gaining 33.59% in August. Peabody Energy (NYSE: BTU) advanced 29.93% in August, topping revenue targets with $1.0 billion in sales, a 12.7% year-over-year increase, and upgraded second-half production guidance.
The ProPicks AI strategy has delivered a 192.02% return since its November 2023 launch, outperforming the S&P 500 by 110.86 percentage points. The energy-focused ProPicks portfolio is up 7.0% month-to-date, while the broader market benchmark gained 2.5% over the same period.
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