NEW YORK ( TheStreet) -- Tesoro Corporation (NYSE: TSO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • 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 169.0% when compared to the same quarter one year prior, rising from -$155.00 million to $107.00 million.
  • 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 year. We feel that this trend should continue. During the past fiscal year, TESORO CORP continued to lose money by earning -$0.23 versus -$1.02 in the prior year. This year, the market expects an improvement in earnings ($2.58 versus -$0.23).
  • Powered by its strong earnings growth of 166.66% and other important driving factors, this stock has surged by 87.70% 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.
  • The revenue growth came in higher than the industry average of 25.0%. Since the same quarter one year prior, revenues rose by 43.8%. Growth in the company's revenue appears to have helped boost the earnings per share.

Tesoro Corporation engages in refining and marketing petroleum products. It operates in two segments, Refining and Retail. The Refining segment processes both heavy and light crude oils and produces primarily gasoline and gasoline blendstocks, jet fuel, diesel fuel, and heavy fuel oils. Tesoro has a market cap of $3.6 billion and is part of the basic materials sector and energy industry. Shares are up 30.9% year to date as of the previous trading day's close.

You can view the full Tesoro Ratings Report or get investment ideas from our investment research center.