Trade-Ideas LLC identified Tesoro ( TSO) as a strong on high relative volume 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 $158.0 million.
  • TSO has traded 323,035 shares today.
  • TSO is trading at 3.58 times the normal volume for the stock at this time of day.
  • TSO is trading at a new high 3.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on TSO:

Tesoro Corporation, through its subsidiaries, operates as an independent petroleum refining, logistics, and marketing company in the United States. The stock currently has a dividend yield of 2.7%. TSO has a PE ratio of 7. Currently there are 6 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 2.0 million shares per day over the past 30 days. Tesoro has a market cap of $8.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.73 and a short float of 4.9% with 2.76 days to cover. Shares are down 31.2% year-to-date as of the close of trading on Friday.

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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 notable return on equity, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TESORO CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 224.32% to $184.00 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 -48.95%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 24.6%. Since the same quarter one year prior, revenues fell by 21.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 52.4% when compared to the same quarter one year ago, falling from $145.00 million to $69.00 million.

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