Tesoro (TSO) Stock Continues to Outperform Crude Market
NEW YORK (TheStreet) -- Tesoro Corp. (TSO) is having an upside day and is poised to trade still higher.
In the chart above, TSO broke below Monday's low, and just rallied above Monday's high, making what chartists call an outside day. TSO is above the rising 200-day moving average. The On-Balance-Volume line is positive along with the Moving Average Convergence Divergence oscillator. With this bullish technical set up, aggressive traders could consider buying TSO here with a sell-stop at $106.
TheStreet Ratings team rates TESORO CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate TESORO CORP (TSO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 100.32% and other important driving factors, this stock has surged by 59.34% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TSO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- TESORO CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TESORO CORP increased its bottom line by earning $6.69 versus $2.83 in the prior year. This year, the market expects an improvement in earnings ($13.79 versus $6.69).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 91.7% when compared to the same quarter one year prior, rising from $396.00 million to $759.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TESORO CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: TSO
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.