DK

With core inflation rising to 2.6% in September and the Federal Reserve signaling more rate hikes ahead, investors are turning to value stocks with strong earnings yields. Five stocks—Honda, Micron, Avnet, Delek US Holdings, and Plains GP—are highlighted as value picks with earnings yields above 10%, strong EPS growth projections, and upward earnings estimate revisions.

Marathon Petroleum (MPC) and Delek US Holdings (DK) both reported strong Q2 2026 earnings driven by higher crack spreads and improved refining margins. MPC posted $5.1B net income with robust midstream operations and $2.8B in shareholder returns, while DK reported $343.9M adjusted net income with a $220M free-cash-flow improvement plan.

MPC outperformed with 163.8% one-year returns versus DK's 128.4%, though DK shows stronger earnings estimate revisions. MPC trades at 7.97x forward P/E versus DK's 6.83x, with analysts rating both as Strong Buy but favoring MPC's integrated business model.

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.