DK Should I Buy
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Delek US Holdings Inc. (DK) is not a strong buy for a beginner, long-term investor at this time. Despite some technical indicators showing bullish trends, the company's weak financial performance, declining analyst price targets, and lack of significant positive catalysts make it a less attractive investment currently. A hold position is recommended until there is a clearer improvement in financials or market sentiment.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), and the MACD histogram is positive at 0.623, indicating a potential upward trend. RSI is neutral at 53.371, suggesting no overbought or oversold conditions. Key support is at 29.086, and resistance is at 35.466. However, the stock's recent price movement is volatile, with a -4.35% regular market change and a 1.00% post-market recovery.
The stock has a 4.78% chance of increasing in the next month based on historical candlestick patterns. Additionally, the refining market outlook for 2026 is expected to improve, driven by tighter supply/demand dynamics and crude differential tailwinds.
Towle & Co. fully exited its position in Delek US Holdings, signaling a cautious stance. The company reported a significant net loss of $514.90 million over the last twelve months, with declining revenue and gross margin. Analyst ratings have been neutral to bearish, with multiple firms lowering price targets recently. The upcoming earnings report on February 25, 2026, may introduce further volatility.
Delek US Holdings reported weak financials in Q3 2025, with revenue dropping 5.11% YoY to $2.89 billion. Net income plummeted by 331.77% YoY to $178 million, and EPS dropped 343.33% YoY to 2.92. Gross margin also fell significantly by 1715.48% YoY to 13.57. The company is currently struggling with profitability and operational efficiency.
Analysts have been lowering their price targets for Delek US Holdings. Morgan Stanley reduced its target to $38, Citi to $33, and Scotiabank to $34, all maintaining neutral ratings. While there is long-term optimism for the refining sector, analysts remain cautious due to valuation concerns and market volatility.
