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6 Stocks Benefiting From Lower Gas Prices

Stocks in this article: ORLY AAP CVX XOM FDO DLTR

3. Dollar Tree (DLTR)

Company Profile: Dollar Tree, with a market value of $12 billion, offer a variety of consumable merchandise, including candy and food, general merchandise and seasonal goods--all for $1. It has about 4,350 stores in North America.

Investor Takeaway: Its shares are up 27% this year, including 10% in the past three months, and have a three-year, average annual return of 54%.

Analysts give its shares eight "buy" ratings, five "buy/holds," 9 "holds," one "weak hold," and one "sell," according to a survey of analysts by S&P. S&P has a "sell" rating on it based on valuation concerns, otherwise it's upbeat on its long-term outlook.

Dollar Tree has benefited significantly from the prolonged recession and the challenge it faces now is whether it can hold on to the customers it gained because of the poor economy when it improves. In its current fiscal year, it's expected to earn $2.48 per share and that that will grow by 15% to $2.84 per share the following year.

2. ExxonMobil (XOM)

Company Profile: ExxonMobil, with a market value of $400 billion, is an integrated oil and gas company that explores for, produces, and refines oil around the world. It is the world's largest refiner and one of the world's largest manufacturers of commodity and specialty chemicals.

Dividend Yield: 2.6%

Investor Takeaway: Its shares are up 2% this year, including 3.7% in the past three months, and is up an average 11% annually over a three-year period.

S&P has it rated "strong buy," with a $103 price target, which is a 21% premium to its current price. Analysts give its shares nine "buy" ratings, three "buy/holds," and eight "holds," according to a survey of analysts by S&P.

S&P Capital IQ analyst Michael Kay says "Exxon is one of the largest and most efficient refiners in the world, in our opinion. Its refineries are very advanced, providing it with a low cost structure and high profitability. And the company's massive exposure to the higher margin/higher growth upstream segment should allow it to absorb any weakness in demand."

Analysts' consensus estimate is for earnings of $7.92 per share this year, and growing by 8% to $8.57 next year.

1. Chevron (CVX)

Company Profile: Chevron, with a market value of $209 billion, is the second-largest oil company in the U.S and one of the largest integrated energy companies in the world with exploration, production, and refining operations worldwide.

Dividend Yield: 3.4%

Investor Takeaway: Its shares are up 1.2% this year, including 6% in the past three months. They have a three-year, average annual return of 23%. S&P analysts have it rated "strong buy" with a year-end price target of $132, which is a 25% premium to the current price.

Analysts give its shares 10 "buy" ratings, six "buy/holds," and four "holds," according to a survey of analysts by S&P. It's diversifying its product mix to include oil shale and liquefied natural gas projects to position itself as a leader in emerging Asia-Pacific markets, and analyst Kay says the company "has been reducing its refining footprint over the last several years, which would help mitigate the impact of any decline in gasoline demand or narrowing refining margins."

It's expected to earn $12.71 per share this year by analysts.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
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