Is HollyFrontier a Must-Buy?

HollyFrontier announced second-quarter earnings last week and calmly beat analyst estimates with $2.39 EPS, but the company's margins and cash-generating abilities are what get investors' mouths watering. With an abundant supply of West Texas intermediate crude oil, HollyFrontier posts one of the highest operating margins in the industry at 13.6%. Check out the video below for more performance metrics and an insight into the second half of HFC's 2012.

Crude prices have been on a recent rally, which means refiners are likely to receive a haircut as increased oil prices lead to decreased margins. However, you can hedge your position by finding oil companies that are set to takeoff if crude continues its march higher. If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's 3 Stocks for $100 Oil. You can get free access to this special report by clicking here.

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Austin Smith and Joel South have no positions in the stocks mentioned above. The Motley Fool owns shares of Western Refining. Motley Fool newsletter services recommend HollyFrontier. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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