Behind the Rising XLE Stocks: Refining and Marketing



World Fuel Services: the top gainer

So far this week (starting October 2, 2017,) World Fuel Services (INT) is leading our select list of gainers in the refining and marketing group of energy stocks. INT rose from last week’s close of $33.91 to $35.81 on October 4, which represents a ~6% rise. (For this analysis, we’ve selected refining and marketing companies with market capitalizations of greater than $100 million and with an average trading volume greater than 100,000 shares last week.)

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The stock rose ~4% on Monday, October 2, and followed through on Tuesday and Wednesday with declining volumes. On Wednesday, the stock showed a reverse candle on the daily chart, which is a warning sign for this week’s uptrend. The stock has been seeing a strong downtrend in 2017. YTD (year-to-date), INT has fallen ~22%.

On Wednesday, October 4, after the market closed, INT announced the renewal of its share repurchase program, through which INT will purchase common stocks up to $100 million. This new share repurchase program replaces its previous share repurchase program announced in September 2016.

INT also announced a quarterly cash dividend of $0.06 per share on its common stock. This dividend is payable on November 6, 2017, to stockholders of record as of October 16, 2017. On October 4, 2017, INT closed at $35.81.

Other gaining refining and marketing stocks this week

HollyFrontier (HFC) has risen ~2.3% so far this week as of Wednesday, October 4, when HFC stock hit its 52-week high of $36.83. HFC stock has been seeing a strong uptrend since June 2017 and has gained more than 56% since then.

Other notable gainers in our refining and marketing group of energy stocks are CVR Refining (CVRR), Phillips 66 (PSX), and Andeavor (ANDV), which have risen 2.03%, 1.99%, and 1.91%, respectively, so far this week. Last week, Phillips 66 announced that it would release its 3Q17 earnings on October 27, 2017.

The VanEck Vectors Oil Refiners ETF (CRAK) has risen 0.87% so far this week, despite the decline in gasoline prices, compared with the SPDR Dow Jones Industrial Average ETF’s (DIA) rise of 1.16%.


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