Why Tesoro Is Poised to Keep Rallying
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas refiner Tesoro has earned a respected four-star ranking.
With that in mind, let's take a closer look at Tesoro and see what CAPS investors are saying about the stock right now.
Tesoro facts
Headquarters (founded) | San Antonio, Texas (1939) |
Market Cap | $6.2 billion |
Industry | Oil and gas refining and marketing |
Trailing-12-Month Revenue | $32.0 billion |
Management | Chairman/CEO Gregory Goff (since 2010) CFO G. Scott Spendlove (since 2010) |
Return on Capital (average, past 3 years) | 8.7% |
Cash/Debt | $1.4 billion / $1.6 billion |
Dividend Yield | 1.4% |
Competitors | HollyFrontier Shell Oil Products US Valero Energy |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 993 members who have rated Tesoro believe the stock will outperform the S&P 500 going forward.
Earlier this month, one of those Fools, All-Star TMFDeej, succinctly summed up the Tesoro bull case for our community:
Refiners in general have been on quite a run lately, benefiting from the massive spread between Brent and WTI. As a west coast refiner, Tesoro hasn't benefited much from that trend. ...
One of the best investors of our generation, Dan Loeb, recently initiated a position in [Tesoro]. Loeb believes that the company's shares could double. At less than three times EBITDA, Tesoro has hidden assets in pipelines, and management that's starting to make more shareholder friendly moves. Its acquisition on BP's Carson refinery looks super cheap.
Whether on its own, or spurred by Loeb, if [Tesoro's] management continues plowing money into buy backs or dividends this undervalued stock should rise.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Tesoro may not be your top choice.
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The article Why Tesoro Is Poised to Keep Rallying originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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