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    Delek US Holdings (DK): Valuation Check After a 22% Pullback from Recent Highs

    Simply Wall St·12/25/2025 10:20:06
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    Stock performance and recent moves

    Delek US Holdings (DK) has quietly pulled back over the past month, dropping roughly 22%, even though its year to date return remains strong. That combination of recent weakness and longer term strength makes the latest slide worth a closer look.

    See our latest analysis for Delek US Holdings.

    With the latest share price at $29.71, Delek US Holdings has seen near term share price momentum cool after a strong year to date share price return and robust one year total shareholder return, suggesting investors are reassessing how much risk they are willing to pay for.

    If Delek has put energy back on your radar, this could be a good moment to explore aerospace and defense stocks as another pocket of the market where shifting risk sentiment can create interesting opportunities.

    With shares still up strongly over the past year but now trading well below analyst targets and our intrinsic value estimate, investors face a key question: is DK now a mispriced refiner, or is the market already baking in its next leg of growth?

    Most Popular Narrative Narrative: 28.4% Undervalued

    Compared with the last close at $29.71, the most followed narrative anchors on a fair value at $41.50, implying substantial upside if its assumptions play out.

    The company's disciplined capital allocation, highlighted by continued share buybacks and dividends even during cyclical downturns, is set to boost earnings per share and return on equity, with balance sheet improvements providing further room for shareholder returns and financial flexibility.

    Read the complete narrative.

    If you want to see what kind of margin reset and earnings power could justify that gap, including how future buybacks shape the math and why the discount rate barely moved while fair value stayed elevated, dive into the full narrative and unpack the numbers driving that 2028 earnings scenario.

    Result: Fair Value of $41.50 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, the upbeat margin and buyback story still hinges on refining heavy hydrocarbons and favourable regulatory outcomes; any reversal could quickly compress that upside.

    Find out about the key risks to this Delek US Holdings narrative.

    Build Your Own Delek US Holdings Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just minutes: Do it your way.

    A great starting point for your Delek US Holdings research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    Before you move on, consider scanning focused stock ideas that could sharpen your portfolio and help you stay ahead of the crowd.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.