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3 Energy Stocks in the Spotlight Ahead of Summer Driving Season
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This year, there may be a potential problem or bottleneck with the availability of gasoline before summer, when car travel typically increases. Per data from the U.S. Energy Information Administration, this week motor gasoline inventories fell by 4.3 million barrels from the previous week, currently approximately 3% lower than the five-year average for this time of year.
The decrease in inventories has resulted in a rise in gasoline prices, with the current national average for regular gasoline, as measured by AAA, standing at $3.582 per gallon. This price is higher than the figures from a year ago and from last week.
The surge in gasoline demand and the subsequent price increase are advantageous for retailers of gasoline and refiners in the United States. Using our unique stock screener, we've identified three stocks - Murphy USA Inc. (MUSA - Free Report) , PBF Energy Inc. (PBF - Free Report) , and Valero Energy Corporation (VLO - Free Report) - that are positioned to benefit from this trend. It is now time to bet on Murphy USA and PBF Energy, while keeping an eye on Valero Energy.
3 Stocks to Gain
Being a well-known retailer of gasoline and convenience merchandise, Murphy USA is well-positioned to capitalize on the growing gasoline demand. Utilizing its huge network of retail gasoline and convenience stores in 27 states, the company is able to provide services to 2 million customers on a daily basis.
PBF Energy is also on a solid footing to gain from rising gasoline demand since it is a leading North American independent refiner. Apart from having a conservative balance sheet and strong liquidity, PBF Energy, carrying a Zacks Rank #2 (Buy), is investing in lucrative projects that may aid the company in generating significant returns for shareholders.
Valero Energy, currently carrying a Zacks Rank #3 (Hold), is a best-in-class oil refiner involved in the production of fuels and products that can meet the demands of modern life. Its refineries are located across the United States, Canada and the U.K. A total of 15 petroleum refineries, wherein Valero has ownership interests, have a combined throughput capacity of 3.2 million barrels per day.
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3 Energy Stocks in the Spotlight Ahead of Summer Driving Season
This year, there may be a potential problem or bottleneck with the availability of gasoline before summer, when car travel typically increases. Per data from the U.S. Energy Information Administration, this week motor gasoline inventories fell by 4.3 million barrels from the previous week, currently approximately 3% lower than the five-year average for this time of year.
The decrease in inventories has resulted in a rise in gasoline prices, with the current national average for regular gasoline, as measured by AAA, standing at $3.582 per gallon. This price is higher than the figures from a year ago and from last week.
The surge in gasoline demand and the subsequent price increase are advantageous for retailers of gasoline and refiners in the United States. Using our unique stock screener, we've identified three stocks - Murphy USA Inc. (MUSA - Free Report) , PBF Energy Inc. (PBF - Free Report) , and Valero Energy Corporation (VLO - Free Report) - that are positioned to benefit from this trend. It is now time to bet on Murphy USA and PBF Energy, while keeping an eye on Valero Energy.
3 Stocks to Gain
Being a well-known retailer of gasoline and convenience merchandise, Murphy USA is well-positioned to capitalize on the growing gasoline demand. Utilizing its huge network of retail gasoline and convenience stores in 27 states, the company is able to provide services to 2 million customers on a daily basis.
Currently, Murphy USA sports a Zacks Rank #1 (Strong Buy) and has witnessed upward earnings estimate revisions for this year. You can see the complete list of today’s Zacks #1 Rank stocks here.
PBF Energy is also on a solid footing to gain from rising gasoline demand since it is a leading North American independent refiner. Apart from having a conservative balance sheet and strong liquidity, PBF Energy, carrying a Zacks Rank #2 (Buy), is investing in lucrative projects that may aid the company in generating significant returns for shareholders.
Valero Energy, currently carrying a Zacks Rank #3 (Hold), is a best-in-class oil refiner involved in the production of fuels and products that can meet the demands of modern life. Its refineries are located across the United States, Canada and the U.K. A total of 15 petroleum refineries, wherein Valero has ownership interests, have a combined throughput capacity of 3.2 million barrels per day.