Tesoro has a recent closing price of $43.24 off a 52-week range of $18.90-$44.73. Earnings per share are at $4.65 with a PE Ratio at 9.3. It pays a $0.12 quarterly dividend, which with the steep runup lately yields only a 1.09% yield. It has a current ratio of 1.28 and this has been widening over the last year as the company has further solidified its finances.
The company runs seven refineries in the Western United States and is in the process of buying another refinery from BP (BP). Tesoro's earnings have been all over the park, in part because of its heavy investment in new refineries and equipment upgrades. Tesoro has some key elements of its refinery capacity located in well positioned areas like Utah, North Dakota and Washington State so it has good opportunities to take advantage of market imbalances. It is larger than the first few refining stocks on this screen (from a refining capacity basis), so those advantages will be somewhat diluted.
Tesoro is a good buy, however, it may take it a little longer to show positive earnings growth as it continues to work through its maintenance program and digests the BP purchase. It might be better to put this issue on your watch list and purchase it on dips.
