Earlier this week, the San Antonio-based independent petroleum refining and marketing company said it would acquire the private renewable fuels and chemical company Virent.
Tesoro hopes to utilize the Madison, WI-based company's renewable energy technology, BioForming, after the transaction.
Terms of the deal were undisclosed.
This has been a banner week for Tesoro, as the stock bolted higher on tremendous volume to close just under the 200-day moving average.
What is amazing is the speed of which this move has occurred and with enormous power. Just last Friday, Tesoro was mired in a miserable downtrend, in a symmetrical triangle that for all intents and purposes would resolve downward.
Yet that didn't happen, and now we have a moving average convergence divergence (MACD) buy signal with stellar relative strength.
While the 200-day moving average looms large here as resistance (also is the April high), any pullback is likely to be bought.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Tesoro as a Buy with a ratings score of B. This is driven by a few notable strengths, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. The team feels its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: