Tesoro Corporation (TSO) Flagging After Hours

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Tesoro Corporation ( TSO) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Tesoro Corporation as such a stock due to the following factors:

  • TSO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $131.3 million.
  • TSO is down 3.8% today from today's close.

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More details on TSO:

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. The stock currently has a dividend yield of 2%. TSO has a PE ratio of 15.8. Currently there are 6 analysts that rate Tesoro Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Tesoro Corporation has been 3.6 million shares per day over the past 30 days. Tesoro has a market cap of $6.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.47 and a short float of 8.9% with 4.45 days to cover. Shares are down 13.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tesoro Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 42.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 84.25% to $831.00 million when compared to the same quarter last year. In addition, TESORO CORP has also vastly surpassed the industry average cash flow growth rate of -44.35%.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • TSO's debt-to-equity ratio of 0.76 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.87 is weak.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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