Trade-Ideas: Tesoro (TSO) Is Today's Unusual Social Activity 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.

Trade-Ideas LLC identified Tesoro ( TSO) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Tesoro as such a stock due to the following factors:

  • TSO has 14x the normal benchmarked social activity for this time of the day compared to its average of 5.84 mentions/day.
  • TSO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $209.5 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on TSO:

Tesoro Corporation, through its subsidiaries, engages in petroleum refining and marketing activities in the United States. It operates in three segments: Refining, Tesoro Logistics LP (TLLP), and Retail. The stock currently has a dividend yield of 1.9%. TSO has a PE ratio of 13.3. Currently there are 5 analysts that rate Tesoro a buy, no analysts rate it a sell, and 7 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 $11.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.02 and a short float of 7.7% with 4.44 days to cover. Shares are up 19.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tesoro as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 94.91% and other important driving factors, this stock has surged by 52.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • TESORO CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TESORO CORP increased its bottom line by earning $6.69 versus $2.83 in the prior year. This year, the market expects an improvement in earnings ($7.13 versus $6.69).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 85.9% when compared to the same quarter one year prior, rising from $78.00 million to $145.00 million.
  • Net operating cash flow has slightly increased to -$148.00 million or 1.33% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -42.26%.

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