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 new lifetime high 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 $235.9 million.
  • TSO has traded 5,168 shares today.
  • TSO is trading at a new lifetime high.

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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 1.8%. TSO has a PE ratio of 24.5. Currently there are 7 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 2.8 million shares per day over the past 30 days. Tesoro has a market cap of $8.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.50 and a short float of 5.4% with 2.14 days to cover. Shares are up 14.4% year-to-date as of the close of trading on Wednesday.

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, solid stock price performance, good cash flow from operations 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 came in higher than the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 25.1%. 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.
  • Compared to its closing price of one year ago, TSO's share price has jumped by 32.54%, exceeding the performance of the broader market during that same time frame. 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.
  • Net operating cash flow has significantly increased by 228.92% to $526.00 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 -6.28%.
  • The debt-to-equity ratio is somewhat low, currently at 0.70, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
  • TESORO CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, TESORO CORP reported lower earnings of $2.83 versus $6.20 in the prior year. This year, the market expects an improvement in earnings ($5.30 versus $2.83).

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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