The energy sector continues to shine as energy demand recovers while the number of serious cases of Covid falls. The Relative Strength Rating for oil major HollyFrontier has jumped nearly 20 points to 90 Wednesday, up from a 71 RS Rating just a little over two weeks earlier. The improvement comes amid a major executive shift for the company. HollyFrontier stock edged up 0.2% to close at 36.87 Wednesday.
The 90 RS Rating means that HollyFrontier stock has outperformed 90% of all stocks over the past year. Stocks that go on to make the biggest gains often have an 80 or higher RS Rating as they launch their biggest price moves.
HollyFrontier Stock Also Has Superior Composite
Among other key ratings, HollyFrontier stock earns a 93 Composite Rating of a best-possible 99. The Dallas-based refiner of high-value light oil products such as gasoline, diesel and jet fuel's middling 69 EPS Rating reflects weak profit growth in the early part of the pandemic. However, its B Accumulation/Distribution Rating on an A+ to E scale shows that institutional investors are fairly heavy buyers of its stock.
On Nov. 10, the company named Tim Go president. He was formerly the company's CFO. Mike Jennings, who previously held the posts of CEO and president, will remain CEO.
"Since joining the company in June 2020, Tim has provided significant leadership and direction in our efforts to strengthen and grow HollyFrontier's Refining segment," Jennings said the news release. "In 2021, he also played a key role in the company's acquisition and integration of the Puget Sound refinery."
Sales grew 66% last quarter to $4.69 billion as earnings surged 412% vs. the same period a year ago, to $1.28 per share. The prior quarter, EPS grew 448% on a 122% jump in sales.
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HollyFrontier stock is building a long consolidation pattern, that began in March 2021, with a 42.49 entry. See if it can break out past that buy point in volume at least 40% higher than normal.
HollyFrontier stock holds the No. 4 rank among its peers in the Oil & Gas-Refining/Marketing industry group. Sunoco and Phillips 66 are also among the group's highest-rated stocks.
The Oil & Gas-Refining/Marketing group ranks a lofty No. 11 on IBD's list of 197 industry groups.
When you're researching the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary Relative Strength Rating measures price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
