Tesoro Corporation (TSO): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Tesoro Corporation ( TSO) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Tesoro Corporation fell $1.34 (-3.1%) to $41.90 on average volume. Throughout the day, 4.8 million shares of Tesoro Corporation exchanged hands as compared to its average daily volume of four million shares. The stock ranged in price between $41.62-$43.60 after having opened the day at $42.96 as compared to the previous trading day's close of $43.24. Other companies within the Energy industry that declined today were: Renewable Energy Group ( REGI), down 21.6%, Energy Services of America Corporation ( ESA), down 9.2%, Lucas Energy ( LEI), down 8.9%, and ZaZa Energy ( ZAZA), down 7.8%.
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Tesoro Corporation, together with its subsidiaries, engages in refining and marketing petroleum products in the United States. It operates in two segments, Refining and Retail. Tesoro Corporation has a market cap of $6.17 billion and is part of the basic materials sector. The company has a P/E ratio of 9.4, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 89% year to date as of the close of trading on Friday. Currently there are seven analysts that rate Tesoro Corporation a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Tesoro Corporation as a buy. The company's strengths can be seen in multiple areas, such as its 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.

On the positive front, Marathon Petroleum ( MPC), up 5.6%, Gastar Exploration ( GST), up 5.5%, Goodrich Petroleum ( GDP), up 4.4%, and Quicksilver Resources ( KWK), up 4.3%, were all gainers within the energy industry with Baker Hughes ( BHI) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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