Bull’s Eye Report: Tesoro (TSO)

Try TSO for a short-term trade

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Why We Like The Stock:

Tesoro Corp. (TSO) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. A handful of oil and gas stocks have been on the decline since late February, such as HollyFrontier Corp. (HFC), Western Refining (WNR) and World Fuel Services Corp. (INT), though there have been a few outperformers, such as Phillips 66 (PSX) and TSO.

TSO peaked in mid-May at around $65, which is +12.85% higher than its current price. The stock has formed a nice base just north of $57, slightly above the 50-day moving average. With its long- and intermediate-term uptrends still fully intact, TSO looks poised to spring back up above $60 in the short-term. Despite maneuvering in the oversold stochastic for a little over 2 weeks, the price is holding up quite well. We would be buyers above $55.45 and look for a quick double-digit gain on this trade.

We Would Be Buyers:

At the current price (~$57.60).

Company Profile:

Tesoro Corporation is an independent petroleum refiner and marketer in the United States. The company’s subsidiaries, operating through two business segments, manufacture and sell transportation fuels. Its refining operating segment, which operates seven refineries in the western United States, refines crude oil and other feedstocks into transportation fuels, such as gasoline, gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas, petroleum coke and asphalt. This operating segment sells refined products in wholesale and bulk markets to a range of customers within the operations area. Its retail operating segment (retail) sells transportation fuels and convenience products in 18 states through a network of 1,175 retail stations, under the Tesoro, Shell and USA Gasoline brands.

Stock Rating: 8.7

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Tesoro – Last Three Months

tso 1 Bull's Eye Report: Tesoro (TSO)

Tesoro – Last 12 Months

tso 2 Bull's Eye Report: Tesoro (TSO)

Tesoro – Last Five Years

tso 3 Bull's Eye Report: Tesoro (TSO)

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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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