PBF Energy (PBF) Moves 13.9% Higher: Will This Strength Last?

PBF Energy (PBF) shares ended the last trading session 13.9% higher at $32.15. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.1% loss over the past four weeks.

The surge stems from evolving geopolitical conditions that could reopen Venezuela’s large oil and gas reserves to U.S. energy players. As a leading refiner, PBF Energy operates a diversified well positioned refinery network capable of processing a broad slate of crude oils, ranging from heavy sour grades to lighter crudes. Crude from Venezuelan reserves is mostly heavy with high sulfur content. PBF Energy's advanced refinery complexity is perfectly suited to efficiently process Venezuela's heavy crude, maximizing conversion to higher-value refined products, thereby enhancing its margin and cash-flow in the coming days.

This refiner is expected to post quarterly loss of $0.47 per share in its upcoming report, which represents a year-over-year change of +83.3%. Revenues are expected to be $7.26 billion, down 1.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For PBF Energy, the consensus EPS estimate for the quarter has been revised 54.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PBF going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

PBF Energy belongs to the Zacks Oil and Gas - Refining and Marketing industry. Another stock from the same industry, Phillips 66 (PSX), closed the last trading session 4.6% higher at $144.22. Over the past month, PSX has returned -4.1%.

Phillips 66's consensus EPS estimate for the upcoming report has changed -0.5% over the past month to $2.24. Compared to the company's year-ago EPS, this represents a change of +1593.3%. Phillips 66 currently boasts a Zacks Rank of #1 (Strong Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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