3 Surprising S&P 500 Outperformers of 2026

LyondellBasell, APA Corporation, and Valero Energy rank among the top S&P 500 stocks this year, defying expectations.

Apr. 12, 2026 at 12:40pm

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An extreme close-up of intricate, heavy industrial machinery and equipment found in an oil refinery or petrochemical plant, conveying a sense of financial security and economic power through its physical, tangible presence.The unexpected outperformance of energy stocks like Valero, LyondellBasell, and APA Corporation in 2026 highlights the significant impact of geopolitical events on certain industries.North Sea Today

In a surprising twist, three energy-related companies - Valero Energy, LyondellBasell, and APA Corporation - have emerged as some of the top-performing stocks in the S&P 500 so far in 2026. The common thread is the geopolitical shock triggered by the U.S. and Israel's conflict with Iran, which sent oil prices surging and disrupted global supply chains, benefiting these companies.

Why it matters

The outperformance of these energy-focused stocks, which are not typically associated with market-beating returns, highlights the significant impact that geopolitical events can have on certain industries and individual companies. It also demonstrates the importance of diversifying one's portfolio beyond the usual tech and growth darlings.

The details

Valero Energy, a large independent petroleum refiner, has gained close to 44% year-to-date, ranking 25th among S&P 500 performers. The Iran conflict tightened global refining capacity, pushing crack spreads higher and improving the economics of U.S.-based refiners like Valero. LyondellBasell, a global chemical company, has surged nearly 66% year-to-date, ranking 11th, as it benefited from its use of low-cost North American natural gas liquids as feedstock compared to international producers relying on oil-based naphtha. APA Corporation, an independent oil and gas exploration and production company, has gained almost 60% and ranks 14th, driven by surging oil prices and operational improvements.

  • The U.S. and Israel's conflict with Iran began in late February 2026, triggering the geopolitical shock.
  • In Q4 2025, Valero posted earnings per share of $3.82, beating the consensus estimate.
  • Earnings for LyondellBasell are expected to grow 26.15% in the coming year, from $6.31 to $7.96 per share.
  • APA delivered over $1 billion in free cash flow in 2025 despite declining oil prices, cutting annual costs by $300 million, and maintaining flat production.
  • The recent cease-fire announcement earlier this week prompted profit-taking, sending the stocks down.

The players

Valero Energy

One of the largest independent petroleum refiners and fuel producers in the world, with operations spanning refining, renewable fuels, ethanol production, and an extensive logistics network.

LyondellBasell

A global chemical company specializing in polyolefins and advanced polymers, which uses low-cost North American natural gas liquids as feedstock.

APA Corporation

An independent oil and gas exploration and production company with operations in the Permian Basin, Egypt, and the North Sea.

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What’s next

The recent pullback in these stocks following the cease-fire announcement could provide a compelling entry point for investors, as the supply-chain disruptions may not be resolved overnight.

The takeaway

The unexpected outperformance of these energy-focused stocks in the S&P 500 this year highlights the significant impact that geopolitical events can have on certain industries and the importance of diversifying one's portfolio beyond the usual tech and growth favorites.