Oil stock #1: Tesoro Petroleum (TSO)

Filed under: Oil, Stocks to Buy

This oil refiner is up 25% so far in 2009, but it is still way below the almost $30 per share it traded at a year ago. Now, just under $17, Tesoro (NYSE: TSO) trades for eight times forward earnings.

Given that oil prices are on the upswing, look for TSO to sell refined product at higher prices at the pump. Buy low; sell high. It is that simple for TSO.

As long as we avoid the massive swings in crude prices, this little oil refiner can expect to see its stock double in value over the next year or two.

I rate TSO a B or buy.

Up next: Oil Stock #2.

Oil stock #1: Tesoro Petroleum (TSO) originally appeared on BloggingStocks on Sat, 23 May 2009 11:00:00 EST. Please see our terms for use of feeds.

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