PBF Energy (PBF) Surges 6.1%: Is This an Indication of Further Gains?

PBF Energy (PBF) shares soared 6.1% in the last trading session to close at $74.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.2% loss over the past four weeks.

PBF Energy ended sharply higher on the last trading day, driven by the pricing of $500 million of 0% exchangeable notes due 2032. The zero-coupon financing could lower interest costs as proceeds are earmarked largely to repay or redeem 7.875% senior notes due 2030. Investor sentiment may also have benefited from a 37.5% exchange premium and capped-call transactions designed to reduce potential share dilution, while related hedging activity could have supported the stock price.

This refiner is expected to post quarterly earnings of $6.84 per share in its upcoming report, which represents a year-over-year change of +1415.4%. Revenues are expected to be $9.08 billion, up 18.7% 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 remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 #1 (Strong Buy). 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, Par Petroleum (PARR), closed the last trading session 2.3% higher at $83.6. Over the past month, PARR has returned -0.5%.

For Par Petroleum, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.84. This represents a change of -18.7% from what the company reported a year ago. Par Petroleum currently has a Zacks Rank of #3 (Hold).

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research