PBF Energy Inc

Valero Energy (VLO) stock has risen 11.6% sequentially. The stock has risen due to stronger refining conditions in the current quarter.

Valero Energy (VLO) stock has been rising and is up by 10.1% quarter-to-date. Its short interest has also risen. Here’s why.

Valero Energy’s (VLO) stock price is up by 11% quarter-to-date. The stock is surging due to robust refining conditions.

Valero Energy stock has been on an upward spree this year. The stock has risen 9.8% sequentially. The stock price rose due to expanding refining cracks.

Valero Energy (VLO) stock has risen by 10% this quarter, driven by refining cracks expanding. Other refining stocks have also risen.

Oil refining and marketing stocks have been on investors’ radar. Valero Energy (VLO) and Phillips 66 (PSX) have risen 29.0% and 29.7%, respectively, YTD.

Valero Energy stock has surged by 14.2% quarter-to-date. Strengthening refining cracks, recovering oil spreads, and rising equity markets have boosted VLO.

Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) (BRK-B) reduced its stake in Phillips 66 stock by almost 6.7% in the third quarter.

Valero Energy (VLO) stock has risen 18% sequentially. The stock has risen due to better-than-expected results and growing equity markets.

So far this month, Delek and HollyFrontier stocks have fallen 3.7% and 2.7%, respectively. In contrast, PBF stock has risen 2.3%.

Downstream firms Marathon Petroleum (MPC), Valero Energy (VLO), and Phillips 66 (PSX) had a mixed performance in the third quarter.

Phillips 66’s (PSX) earnings surprised Wall Street. The company’s adjusted EPS was at $3.1, which crushed analysts’ EPS estimate of $2.6.

Valero Energy’s earnings and revenue surpassed analysts’ estimates in the third quarter. Its EPS of $1.48 topped analysts’ estimate by about 10%.

The crack spread is a major component that drives refiners’ valuation. In this article, we’ll look at the metric’s different aspects.

Marathon Petroleum stock rose 8.4% on Wednesday. Elliott Management wrote an open letter to the company. D.E. Shaw supports the recommendation.

In a bid to find a solution to the biofuels issue, President Trump met with the CEOs of several refiners as well as senators from the major farming states.

Weaker equity markets have dragged down refining stocks this month, resulting in their dividend yields rising. Let’s see how they stack up.

Shell stock (RDS.A) (RDS.B) fell 7% on August 1, its earnings release day. After its earnings, CFRA downgraded Shell stock and cut its price target.

Analysts expect Delek’s EPS to fall by 38% YoY and 45% quarter-over-quarter to $0.84 in the second quarter of 2019.

Marathon Petroleum (MPC) plans to post its second-quarter results on August 1.

Let’s look at Wall Street analysts’ fourth-favorite refiner, PBF Energy (PBF). Analysts’ ratings on PBF seem to be divided, with eight (or 50%) out of 16 analysts calling it a “buy” in June.

Let’s rank six US refiners based on the number of “buy” ratings they’ve received from Wall Street analysts ahead of their second-quarter earnings results.

The shutdown at Philadelphia Energy Solutions could increase US oil inventories in the coming weeks. But at the same time, gasoline inventories might decline. The Philadelphia Energy Solutions refinery has a refining capacity of 335,000 barrels per day. On June 26, the United States Gasoline Fund (UGA), which follows gasoline prices, rose 4%.

In the week ending June 21, oilfield services stock Nabors Industries (NBR) rose the most among the stocks in the energy space. On June 18, RBC reduced its target price on Nabors Industries by $1 to $11.

PBF Energy’s (PBF) earnings are estimated to fall by 49% to $1.7 in 2019, which is the highest estimated fall in earnings compared to peers. Delek US Holdings (DK), Valero Energy (VLO), and Marathon Petroleum (MPC) are estimated to post 4%, 10%, and 21% falls in earnings in 2019, respectively.

PBF Energy (PBF) has the best dividend yield among American refining stocks. Currently, the company’s yield is 4.8%.

Refining stocks’ valuations have fallen sharply due to the fall in their stock prices. For these stocks, the average forward PE ratio is at 5.4x.

Analysts expect PBF Energy’s earnings to fall 46% to $1.8 per share in 2019. In the first quarter, PBF Energy’s adjusted EPS was -$1.2 per share.

Phillips 66 reported earnings on April 30, 2019.

After the first-quarter earnings, Phillips 66 (PSX) has been rated by a total of 18 Wall Street analysts.

Marathon Petroleum’s dividend yield is 3.5%. The company’s dividend payments have been rising steadily over the past several quarters.

Marathon Petroleum stock has been volatile in the past month. Although the stock has fallen sharply since April 10, it rose earlier in the month.

Jefferies increased its target price on HollyFrontier stock from $49 to $50. JPMorgan Chase cut its target price on the stock from $63 to $59.

HollyFrontier (HFC) stock has fallen 5.5% since January 2—the beginning of the first quarter.

For PBF Energy, seven of the 16 analysts recommended a “buy,” six recommended a “hold,” and three recommended a “sell” in April.

All of the 17 analysts covering Marathon Petroleum recommended a “buy” in April before the first-quarter earnings.

Among the 18 analysts covering Phillips 66, 12 recommended a “buy” or “strong buy,” while six recommended a “hold.”

Phillips 66 posted better-than-expected fourth-quarter earnings in February. The company’s earnings rose year-over-year.

Valero Energy (VLO) is trading at a forward PE of 10.5x, higher than the peer average of 9.8x.

Valero Energy’s RIN costs fell by $406 million to $536 million in 2018. PBF Energy’s RIN costs fell by $150 million to $144 million in 2018.

For Valero Energy (VLO), 15 (or 75%) of the 20 analysts covering the stock recommended a “buy,” while five recommended a “hold.”

Currently, Marathon Petroleum (MPC) trades at a forward PE ratio of 9.0x, which is below the peer average of 9.9x.

In the first quarter, Marathon Petroleum paid a dividend of $0.53 per share on March 11. The dividend was announced on January 28.

The implied volatility in HollyFrontier has fallen by eight percentage points compared to January 2 to the current level of 34%.

PBF Energy (PBF) stock has fallen 15.3% since February 5—the highest fall among the six US refiners discussed in this series.

Since January 2, the beginning of the first quarter, Phillips 66 (PSX) stock has risen 10.5%.

Currently, Phillips 66 (PSX) is covered by 19 analysts. Analysts’ ratings for the stock have improved in the past year.

PBF Energy’s (PBF) returns are in the bottom two among the six stocks under discussion in this series.