5 Best Up And Coming Stocks To Buy Right Now

5 Best Up And Coming Stocks To Buy Right Now: Tesoro Logistics LP(TLLP)

Tesoro Logistics LP engages in the ownership, operation, development, and acquisition of crude oil and refined products logistics assets in the United States. The company is involved in the gathering, terminalling, transportation, and storage of crude oil and refined products. Its assets consist of a crude oil gathering system in the Bakken Shale/Williston Basin area of North Dakota and Montana; eight refined products terminals in the midwestern and western United States; a crude oil and refined products storage facility; and five related short-haul pipelines. The company was founded in 2010 and is based in San Antonio, Texas. Tesoro Logistics LP is a subsidiary of Tesoro Corporation.

Advisors' Opinion:

• [By Aimee Duffy]

  Master limited partnerships are not like other stocks, and the metrics we use to compare an MLP to its peers differ from the metrics we use to compare regular companies. For example, instead of the traditional P/E ratio, we emphasize MLP-specific metrics like distribution coverage ratio, and today's focus: price to distributable cash flow (P/DCF). I'll use MPLX (NYSE: MPLX  ) , Tesoro Logistics (NYSE: TLLP  ) , and Holly Energy Partners (NYSE: HEP  ) as our three examples.

• [By Robert Rapier]

  RRMS didn’t see the same kind of price surge in 2013 as ACMP, so offers a more generous  annualized yield of 5.2 percent. RRMS also has a lower total debt/equity (mrq), at 22 percent versus ACMP’s 71 percent. For Q3 2013, RRMS reported $15.4 million in adjusted EBITDA, a year-over-year increase of 65 percent. In comparison, adjusted EBITDA for the 2013 third quarter totaled $227 million for ACMP, an increase of 90 percent year-over-year.

  Tesoro Logistics (NYSE: TLLP) was spun off by the refiner Tesoro (NYSE: TSO)! in 2011 to operate pipelines leading to and from its plants. TLLP’s assets consist of a crude oil gathering system in the Williston Basin area of North Dakota and Montana, 17 refined product and storage terminals, three dedicated storage facilities, four California marine terminals, a rail unloading facility, and a petroleum coke handling facility.
  
  Distributions have  grown steadily since the IPO, from $1.35 per unit (annualized) in Q2 2011 to the current annualized level of $2.18/unit. At a current unit price of $53.49, TLLP is well off its 52-week high of $71.92. Distributions have increased each quarter since the IPO, and units currently have a yield of 4.2 percent. But investors should be wary given that TLLP is highly leveraged. Its total debt/equity (mrq) is nearly 400 percent, much higher than most competitors.

  Of the three MLPs — ACMP, RRMS and TLLP — RRMS looks best at the moment with the least downside risk. It is by far the least-leveraged, didn’t have a huge run-up in 2013 that depressed its yield, and it has managed to steadily grow revenues and distributions since its IPO.    

source from Top Stocks For 2015:http://www.topstocksblog.com/5-best-up-and-coming-stocks-to-buy-right-now-2.html