Trade-Ideas: Tesoro (TSO) Is Today's Post-Market Leader Stock

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 ( TSO) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Tesoro 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 $160.4 million.
  • TSO is up 2.2% today from today's close.

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More details on TSO:

Tesoro Corporation, together with its subsidiaries, is engaged 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 1.9%. TSO has a PE ratio of 18.5. Currently there are 6 analysts that rate Tesoro a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Tesoro has been 2.9 million shares per day over the past 30 days. Tesoro has a market cap of $7.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.35 and a short float of 4.5% with 1.87 days to cover. Shares are down 4.6% year-to-date as of the close of trading on Tuesday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tesoro as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 34.9%. 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.
  • TSO's debt-to-equity ratio of 0.66 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 0.75 is weak.
  • TESORO CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, TESORO CORP reported lower earnings of $2.82 versus $6.20 in the prior year. This year, the market expects an improvement in earnings ($5.39 versus $2.82).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 125.9% when compared to the same quarter one year ago, falling from $27.00 million to -$7.00 million.

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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