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Zacks Analyst Blog Highlights: Sunoco Inc., Tesoro Corp., Western Refining Inc., Valero Energy Corp. and ExxonMobil Corp.

October 26, 2009 | Comments: 0
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SUN | TSO | WNR | VLO | XOM
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For Immediate Release

Chicago, IL – October 26, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Sunoco Inc. (SUN - Analyst Report), Tesoro Corp. (TSO - Analyst Report), Western Refining Inc. (WNR - Snapshot Report), Valero Energy Corp. (VLO - Analyst Report) and ExxonMobil Corp. (XOM - Analyst Report).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s AnalystBlog:

EIA: Fuel Supplies Fall Further

Though we welcome the bullish EIA data, we are not fully convinced about the sustainability of crude oil’s current gains, as the specter of a continued glut in global fuel supplies still weighs and all of the inventories remain higher compared to averages for this time of year. Moreover, the drop in petroleum stocks was triggered by weak refinery activity rather than a much awaited pick-up in oil demand.

As such, we prefer to maintain our cautious stance on oil refiners like Sunoco Inc. (SUN - Analyst Report), Tesoro Corp. (TSO - Analyst Report), Western Refining Inc. (WNR - Snapshot Report), given that the overall environment for refining margins is likely to remain poor going into 2010.

The sharply lower refinery utilization (at just 81.1% of capacity) provides enough evidence that refineries are cutting back on production because the economy is still struggling on the demand side. Being the largest independent refiner, Valero Energy Corp. (VLO - Analyst Report) remains particularly exposed to this unfavorable macro backdrop. We see little reason for investors to own Valero and have an Underperform recommendation on the company.

Companies like ExxonMobil Corp. (XOM - Analyst Report) -- oil majors that have significant refining operations -- are also expected to remain under pressure until pricing and demand improve.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

 

 


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Market Summary Nov 24, 2009 19:37 pm ET
DJIA 10433.71  -17.24 -0.16%
NASD 2169.18  -6.83 -0.31%
S&P 500 1105.65  -0.59 -0.05%
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