Bull’s Eye Report: Western Refining (WNR)

WNR may rise another 10%

   

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.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Western Refining Inc WNR Oil & Gas Refining & Marketing 5.9 +21.84% $33.76

Why We Like The Stock:

Western Refining Inc. (NYSE:WNR) 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) in one of the top-performing sub-industries of 2013, Oil & Gas Refining & Marketing. Along with its competitors Valero (NYSE:VLO), HollyFrontier Corp. (NYSE:HFC), and Tesoro Corp. (NYSE:TSO), WNR has been blasting higher this year. Though the stock is already up 21.84% so far, its immediate upside to $39.40 is +10.15% higher than current prices, and should it continue to trend higher, WNR has quite a bit of room to run on a weekly basis. Currently, the stock has pulled back and looks to be at a good entry point while still maintaining higher highs and higher lows in its intermediate-term uptrend. We  like the refining and marketing stocks here. WNR in particular offers the best buy-in today.

We Would Be Buyers:

At the current price (~$35.70).

Company Profile:

Western Refining, Inc. is an independent crude oil refiner and marketer of refined products and also operates service stations and convenience stores. WNR operates in three business segments: the refining group, the wholesale group, and the retail group. The Company owns and operates two refineries with a total crude oil throughput capacity of approximately 151,000 barrels per day. In addition to its 128,000 barrels per day refinery in El Paso, Texas, WNR also owns and operates 23,000 barrels per day refinery near Gallup, New Mexico. On December 29, 2011, the Company completed the sale of its Yorktown refining and terminal assets. Its primary operating areas encompass West Texas, Arizona, New Mexico, Utah, Colorado, and the Mid-Atlantic region. In addition to the refineries, it also owns and operates stand-alone refined product distribution terminals in Albuquerque, New Mexico, and Bloomfield, as well as asphalt terminals in Phoenix and Tucson, Arizona; Albuquerque, and El Paso.

Stock Rating: 5.9

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.

Western Refining – Last Three Months

WNR 1 300x168 Bull's Eye Report: Western Refining (WNR)
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Western Refining – Last 12 Months

WNR 2 300x168 Bull's Eye Report: Western Refining (WNR)
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Western Refining – Last Five Years

WNR 3 300x168 Bull's Eye Report: Western Refining (WNR)
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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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