CVR Energy is Tuesday's IBD Stock Of The Day, as the oil refiner broke out above a traditional buy point during stock market action with U.S. oil prices moving higher after reports that Israel struck Hamas leaders in Qatar.
U.S. oil prices rose less than 1% to slightly below $63 per barrel on Tuesday, though they were off session highs. Crude popped on news reports of Israeli airstrikes in Qatar against senior Hamas leaders in the country.
Crude oil prices edged up 0.6% on Monday, after the Organization of the Petroleum Exporting Countries and its allies, including Russia, announced a smaller-than-expected production hike of just 137,000 barrels per day for October, after much larger increases in prior months. Oil prices had fallen last week in anticipation of an OPEC+ output increase.
U.S. gasoline futures rose around 1.8% on Tuesday. They're down solidly in September but only slightly for the year. Meanwhile, U.S. oil prices remain down around 12% on the year.
A Wider 'Crack' Develops
That wider "crack spread" between crude oil costs and refined petroleum prices is bolstering refining margins and profits.
U.S. supermajors Exxon Mobil and Chevron, which have significant refining operations. both rose around 1.5% during Tuesday's stock market.
But pure-play refiners or refiner/marketing firms such as CVR Energy, PBF Energy and Valero Energy had bigger advances.
CVR Energy, which both refines and markets petroleum products in the U.S., reported a surprise second-quarter profit and better-than-expected revenue at the end of July. However, for the full year, analysts forecast a loss of 52 cents per share vs. a 51-cent loss in 2024, according to FactSet.
Analyst consensus has CVR Energy turning a profit in 2026 through 2029, with sales remaining relatively steady at around $7.3 billion until 2030.
Billionaire Carl Icahn is a major investor in CVR Energy, holding a 70% stake. Icahn has boosted his CVR Energy holdings multiple times during the 2025 stock market, according to regulatory filings.
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CVR Energy Stock Performance
The stock surged 7.5% to 33.13 during Tuesday's stock market trade, marking a breakout from a 32.67 buy point from a cup base, according to MarketSurge chart analysis.
Investors could also use the Sept. 3 high of 32.21 as an early entry
CVR Energy is now up more than 110% since bottoming in April, part of a 70% advance in the 2025 stock market. Meanwhile, more broadly, oil refiners have also rallied recently in this year's stock market. The 27 stocks in the IBD-tracked Oil&Gas-Refining/Manufacturing industry group have collectively jumped around 20% this year.
That places it in the top 100 industries of the 197 groups tracked by IBD.
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Among those oil refining stocks, PBF Energy stock on Tuesday jumped 5.6%, above a cup base buy point of 29.16. Refining giant Valero gained 2.9% in Tuesday's stock market, moving higher in the buy zone from a 155.12 buy point cleared last week.
CVR Energy stock has a 54 Composite Rating out of a best-possible 99. Shares also have a 91 Relative Strength Rating and a low 5 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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