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PBF Stock Rises, but It’s Still in the Bottom Two

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PBF’s performance

PBF Energy’s (PBF) returns are in the bottom two among the six stocks under discussion in this series. PBF Energy stock has posted lower returns than Phillips 66 (PSX) and Valero Energy (VLO) year-to-date.

PBF Energy stock has risen 2.1% since January 2, 2019. Comparatively, the broad market indicator, the SPDR S&P 500 ETF (SPY), has risen 5.3% in the same period. Phillips 66 and Valero have risen 5.9% and 7.4%, respectively, since January 2.

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PBF Energy’s moving averages

On January 2, PBF Energy’s 10-day moving average stood 7.6% below its 30-day moving average. But the rise in PBF Energy stock affected its 10-day moving average. PBF Energy’s 10-day moving average has risen 10.1% since January 2. Currently, PBF Energy’s 10-day moving average stands 4.7% above its 30-day moving average. Thus, PBF Energy’s 10-day moving average has crossed over its 30-day moving average, suggesting short-term technical bullishness.

How is PBF Energy stock placed after its recent recovery?

PBF Energy stock is trading at a forward PE of 10.6x, higher than the peer average of 9.3x. The higher valuation the market accords to PBF could be due to its high growth expectations. PBF Energy is expected to post a 157% rise in its EPS in 2018, higher than the peer average of 136%. The company is expected to post its earnings results on February 14. Moving on to dividend yield, its current yield stands at 3.5%, higher than the peer average of 3.4%.

Overall, PBF Energy stock is trading with a higher growth expectation and an above-average dividend yield. However, the stock is trading at a higher valuation.

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