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6 Stocks Benefiting From Lower Gas Prices

Tickers in this article: XOM FDO CVX ORLY DLTR AAP

Analysts give its shares six "buy" ratings, seven "buy/holds," 11 "holds," and two "weak holds," according to a survey of analysts by S&P.


S&P has its "buy" rated, upgrading it from "hold," on June 26, and has a $79 price target on its shares, which is an 18% premium to the current price. S&P analysts write that although its customer base of lower income families are expected to spend less in the near term, "we believe the company is well positioned to drive increases in both customer traffic and average customer transaction value with its growing consumables assortment and planned increases in national brand and private label offerings."

It has also recently expanded its food assortment to include refrigerated foods and quick-prep and ready-to-eat products. Analysts' consensus estimate is for earnings of $3.65 per share this year, and growing 16% to $4.24 next year.

3. Dollar Tree(DLTR)

Company Profile: Dollar Tree, with a market value of $12 billion, offer a variety of consumable merchandise, including candy and food, general merchandise and seasonal goods--all for $1. It has about 4,350 stores in North America.

Investor Takeaway: Its shares are up 27% this year, including 10% in the past three months, and have a three-year, average annual return of 54%.

Analysts give its shares eight "buy" ratings, five "buy/holds," 9 "holds," one "weak hold," and one "sell," according to a survey of analysts by S&P. S&P has a "sell" rating on it based on valuation concerns, otherwise it's upbeat on its long-term outlook.

Dollar Tree has benefited significantly from the prolonged recession and the challenge it faces now is whether it can hold on to the customers it gained because of the poor economy when it improves. In its current fiscal year, it's expected to earn $2.48 per share and that that will grow by 15% to $2.84 per share the following year.

2. ExxonMobil(XOM)

Company Profile: ExxonMobil, with a market value of $400 billion, is an integrated oil and gas company that explores for, produces, and refines oil around the world. It is the world's largest refiner and one of the world's largest manufacturers of commodity and specialty chemicals.

Dividend Yield: 2.6%