Is HollyFrontier a Must-Buy?

HollyFrontier announced second-quarter earnings last week and calmly beat analyst estimates with $2.39 EPS, but the company's margins and cash-generating abilities are what get investors' mouths watering. With an abundant supply of West Texas intermediate crude oil, HollyFrontier posts one of the highest operating margins in the industry at 13.6%. Check out the video below for more performance metrics and an insight into the second half of HFC's 2012.

Crude prices have been on a recent rally, which means refiners are likely to receive a haircut as increased oil prices lead to decreased margins. However, you can hedge your position by finding oil companies that are set to takeoff if crude continues its march higher. If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's 3 Stocks for $100 Oil. You can get free access to this special report by clicking here.

Austin Smith and Joel South have no positions in the stocks mentioned above. The Motley Fool owns shares of Western Refining. Motley Fool newsletter services recommend HollyFrontier. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1982638, ~/Articles/ArticleHandler.aspx, 8/29/2014 8:14:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement