Tuesday, April 26, 2011

2 stocks for pain at the pump (TSO, WNR)

Buying gas sucks. Here are 2 stocks that could offset your pain at the pump: Western Refining, Inc. (NYSE:WNR) and Tesoro Corporation (NYSE:TSO).

Even in the face of higher crude acquisition costs, the EIA predicts refiners’ margins will be significantly higher this year. Last year, refiners’ margins averaged $0.35 a gallon. This year, the EIA predicts they’ll average $0.53 a gallon, or over 51 percent higher. Diesel margins are expected to average $0.60 a gallon this year versus $0.40 a gallon last year.

Let's get right into these to stocks:

Tesoro Corporation (NYSE:TSO)

Over the past 12 months Tesoro Corp (TSO) shares have traded between $10.4 and its 52-week high of $28.74. Tesoro Corp shares are now trading with a Forward P/E Ratio of 10.28.

Western Refining, Inc. (NYSE:WNR)

Over the past 12 months Western Refining Inc (WNR) shares have traded between $4.01 and its 52-week high of $19.5. Western Refining Inc shares are now trading with a Forward P/E Ratio of 9.89.


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