NEW YORK (TheStreet) -- Drivers paid a national average of $3.41 per gallon of gasoline over this year's Labor Day holiday, down from $3.59 last year and down from the record holiday high set at $3.83 in 2012.
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It's all about valuations, dividend yields, technical analysis, and value levels and risky levels. The four gasoline stocks to buy have 12-month trailing price-to-earnings ratios between 12 and 15 with dividend yields between 2% and 4%. Hess has an elevated P/E ratio and low dividend yield.
Chevron and Exxon Mobil are components of the Dow Jones Industrial Average; only four other Dow stocks have lower P/E ratios but also have lower dividend yields. Five other Dow stocks have higher dividend yields but also have higher P/E ratios. This makes the oil giants prudent portfolio candidates.
Here's how to trade the five gas station stocks.
Chevron ($129.45) set an all-time intraday high at $135.10 on July 24 then followed crude oil lower trading as low as $124.58 on August 5. The stock closed last week just below its 50-day simple moving average at $129.62.
The stock has a 12-month trailing price-to-earnings ratio of 12.3 and dividend yield at 3.3%.