Holly Corp. - Momentum

Holly Corp (HOC) jumped to a Zacks #1 Rank (Strong Buy) thanks to an influx of upward estimate revisions. The outlook for HOC has been steadily improving, as has the share price.

Company Description

Holly Corp is a petroleum refiner and marketer in the South West, producing gasoline, diesel, jet fuel and other products.

Estimates Look Great

The Zacks Consensus Estimates for 2010 and 2011 have been steadily rising over the past 3 months, and have seen 13 upward revisions in the past 30 days.

Analysts are looking for earnings of $2.02 this year, which is about 6 times 2009's $0.34. The average estimate for 2011 is now $3.03, which would be a 50% growth rate.

Nice Value

Don't worry about breaking the bank to pick up shares of HOC. The stock is going for about 15 times foreword estimates and with a PEG ratio of only 0.5 times. Other metrics, like EV/EBITDA and P/S, are also coming in ahead of the peer group average.

The Chart

Shares of HOC are absolutely on fire right now. The stock was on a nice gradual incline, but has been surging over the past few sessions. HOC is at the highest levels since mid 2008 right now, and shows no signs of slowing down.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service
 
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