How Analysts Rated Tesoro on Its 1Q17 Earnings Day

In this series, we’ve looked at Tesoro’s (TSO) 1Q17 earnings compared to the estimates. We’ve also analyzed its refining margin for the quarter and its stock performance on May 8, 2017, the earnings release day. Now, we’ll look at analysts’ ratings for TSO.

Tesoro (TSO) has been rated by a total of 18 analysts. Of those, 12 (or 67.0%) have assigned the stock a “buy” or “strong buy” rating, six (or 33.0%) have assigned it a “hold” rating, and none have assigned it a “sell” or “strong sell” rating.

Tesoro (TSO) could witness a change in ratings in the days to come as analysts drill down further into the 1Q17 numbers. TSO’s mean target price of $103 per share implies a 26.0% rise from its current level.

TSO’s peers Phillips 66 (PSX), Valero Energy (VLO), and Marathon Petroleum (MPC) have been rated a “buy” by 21.0%, 57.0%, and 90.0% of analysts, respectively. Other downstream players such as HollyFrontier (HFC), Delek US Holdings (DK), Alon USA Energy (ALJ), and Western Refining (WNR) have been rated a “buy” by 29.0%, 33.0%, 11.0%, and 17.0% of analysts, respectively.

For exposure to small-cap, value stocks, you can consider the iShares Russell 2000 Value (IWN). IWN also has a ~5.0% exposure to energy sector stocks, including DK, WNR, and ALJ.

If you’re looking for exposure to mid-cap stocks, you can consider the SPDR S&P MidCap 400 ETF (MDY). MDY has a ~3.0% exposure to energy sector stocks, including HFC and WNR.

In the next part, we’ll take a look at the change in Tesoro’s implied volatility on earnings day.