Russell 2000

Now, let’s look at the forward valuations of Marathon Petroleum (MPC), Tesoro (TSO), Valero Energy (VLO), and Phillips 66 (PSX).

Marathon Petroluem’s net debt-to-EBITDA ratio stood at 1.9x in 4Q16. It’s lower than the average industry ratio of 2.8x.

Marathon Petroleum (MPC) has been rated by 19 Wall Street analysts. Seventeen analysts (or 89%) have rated it as a “buy” so far in May 2017.

Average valuation multiples Earlier, we discussed refining stocks’ performance in 1Q17 and compared their dividend yields. In this part, we’ll look at Marathon Petroleum’s (MPC), Tesoro’s (TSO), Valero Energy’s (VLO), and Phillips 66’s (PSX) forward valuation. The average forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiples and average forward PE […]

Refining stocks’ valuation In this part, we’ll compare refining stocks’ EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratios with their three-year averages. Marathon Petroleum (MPC), Valero Energy (VLO), Phillips 66 (PSX), and Tesoro (TSO) are trading higher than their historical valuation. MPC was trading at a 10.3x EV-to-EBITDA ratio in 1Q17, compared […]

Since February 2017, downstream stocks have been hit by volatile crack conditions and changing inventory levels. VLO has also witnessed volatility in its stock price.

In this article, we’ll look at refining stocks’ EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratios compared to their three-year historical averages.

PSX is trading at 9x its forward EV-to-EBITDA ratio and at 16.4x its forward PE ratio, which is above the peer averages.

On January 25, six out of the S&P 500’s 11 major sectors moved higher. Strength in the utilities and health care sectors pushed the market higher.

On the DRAM front, Sanjay Mehrotra stated that average capacity per server increased to ~145 GB in 2017, and it is expected to increase to ~350 GB by 2021.

To become cost-competitive, Micron is increasing its capex from $5.0 billion in fiscal 2017 to $7.5 billion in fiscal 2018.

In fiscal 1Q18, Micron introduced its 32 GB NVDIMMN (nonvolatile dual in-line memory module), which is a combination of its DRAM and NAND products.

Intel (INTC) is increasing its earnings through spending discipline and by focusing its expenses on projects with high ROI (return on investment).

NVIDIA (NVDA) has become NVIDIA because of its most advanced GeForce GPUs (graphics processing units), which are superior in the PC (personal computer) gaming market in terms of performance.

Intel taps neuromorphic processors Intel (INTC), a leader in the data processor market, is set to secure its position in the cloud computing space with its new Nervana NNP (Neural Network Processor), which it developed in conjunction with Facebook (FB). Now, it is tapping offline, on-device computing to compete with more energy-efficient ARM processors in […]

Micron’s EBU revenue rose 19% sequentially to $700 million in fiscal 3Q17 driven by high demand for its products across consumer, industrial, and automotive markets.

NVIDIA’s gaming revenues rose 49% year-over-year to ~$1.0 billion in fiscal 1Q18, driven by strong demand for Pascal GPUs.

Intel is offering a full spectrum of AI solutions and several accelerators. The company’s journey in accelerated computing began with its acquisition of Altera in 2015.

Intel has long-term debt of $24 billion against cash reserves of $17 billion, resulting in net debt of $7 billion.

According to Micron’s Ernest Maddock, even if China succeeds in securing legitimate IP, it would still fail in the memory market.

NVIDIA’s product strategy NVIDIA (NVDA) has officially unveiled its next-generation Volta architecture. Whenever the company develops a new architecture, it first launches it on the Tesla GPU (graphic processing unit) platform for data centers because it commands a higher price than other platforms. Then it launches the architecture on the GeForce gaming platform, as its […]

Phillips 66’s 90-day daily beta stands at 1.1, which is below its peer average of 1.5.

Tesoro (TSO) has been rated by 18 analysts. Of those, 12 have assigned the stock a “buy” or “strong buy” rating.

Tesoro (TSO) posted its 1Q17 results on May 8, 2017. Revenues missed analysts’ estimate, but adjusted EPS of $0.55 surpassed the estimate of $0.31.

After its earnings, Phillips 66 was rated by 19 analysts. Four analysts gave it a “buy,” 15 gave it a “hold,” and no analysts gave it a “sell.”

In this series, we’ve examined Tesoro’s (TSO) 1Q17 estimates, refining margin outlook, and stock performance ahead of its earnings release expected on May 8, 2017.

Phillips 66 has been rated by 19 analysts. Of those, four (or 21.0%) have given it a “buy” or “strong buy” rating.

Of the 19 analysts covering MPC, 17 (89%) analysts have assigned “buy” or “strong buy” ratings, while two (11%) have assigned “hold” ratings.

VLO’s mean price target of $72 per share implies around a 10% gain from its current level.

Thirteen out of the 18 analysts covering Tesoro (TSO) have rated it as a “buy” so far in March 2017. Another five analysts have rated TSO as a “hold.”

Phillips 66’s (PSX) 90-day beta stood at 1.2 on March 16, 2017, below its peer average of 2.1.

Intel is looking to mitigate the integration risk by integrating its Automated Driving Group with Mobileye instead of integrating Mobileye into its business.

Fifteen out of the 19 analysts covering Phillips 66 (PSX) rated it as a “hold” in March 2017. Another four analysts rated PSX as a “buy” or a “strong buy.”

Marathon Petroleum’s refining earnings are impacted by the blended LLS 6-3-2-1 crack, the sweet-sour differential, and the LLS-WTI spread.

PBF Energy (PBF) released its 4Q16 results on February 16, 2017. The earnings results weren’t very encouraging for this petroleum refiner.

Tesoro (TSO) posted its 4Q16 results on February 6, 2017. It reported revenues of $6.6 billion, which missed Wall Street analysts’ estimates.

After its 4Q16 results, four of 19 analysts assigned “buy” or “strong buy” recommendations to Phillip’s 66 stock, while 15 assigned “holds.”