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Western Refining has the Highest Beta in the Oil & Gas Refining & Marketing Industry (WNR, PEIX, CLNE)
Published on Wed, 09/28/2011 - 06:24
By Adrienne Chilton in Fast Lane, CLNE, peix, WNR, clean energy fuels, highest beta, nasdaq:clne, nasdaq:peix, nyse:wnr, pacific ethanol, western refining

Below are the three companies in the Oil & Gas Refining & Marketing industry with the highest betas. Higher-beta stocks mean greater volatility and are therefore generally considered to be riskier but also may provide the potential for higher returns.

Western Refining (NYSE:WNR) is highest with a beta of 1.7. Western Refining, Inc., through a subsidiary, refines crude oil and markets petroleum products. The subsidiary primarily produces gasoline, diesel, and jet fuel. The products are marketed in Arizona, New Mexico and Texas in the United States, and Juarez, Mexico.

Western Refining (NYSE:WNR) has potential upside of 39.1% based on a current price of $14.58 and analysts' consensus price target of $20.29. Western Refining shares should first meet resistance at the 200-day moving average (MA) of $15.75 and find additional resistance at the 50-day MA of $17.11.

Pacific Ethanol (NASDAQ:PEIX) is next with a beta of 1.6. Yesterday, Pacific Ethanol traded 770,000 shares vs. average volume of 2.7 million shares per day. The stock underperformed the Dow (0.3% to the Dow's 1.3%) and underperformed the S&P 500 (0.3% to the S&P's 1.1%) during yesterday's trading.

Finishing up the top three is Clean Energy Fuels (NASDAQ:CLNE), with a beta of 1.5.

Clean Energy Fuels share prices have moved between a 52-week high of $17.85 and a 52-week low of $10.75 and closed yesterday at 15% above that low price at $12.38 per share. Over the past week, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has declined 1.6%.

By Adrienne Chilton
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