Weekly Stock Analysis: PBF Energy ($PBF)
This week’s stock analysis focuses on PBF Energy ($PBF), a petroleum refiner and supplier of unbranded transportation fuels, heating oils, lubricants, petrochemical feedstocks, and other petroleum products. Over the past 18 months, oil refiners have experienced tremendous volatility due to crude oil price fluctuations. PBF is currently the fourth-largest oil refiner in the country.
Company Overview
PBF Energy Inc. was formed in 2008 by private equity experts at the Blackrock Group, who saw an opportunity in the energy shortage. The company underwent an initial public offering (IPO) in 2012 and has since become a component of the S&P 600 Index and the Russell 2000 Index. PBF’s market capitalization is approximately $1.88 billion, with an average daily trading volume of 4.9 million shares.
Recent Performance
Over the past year, PBF Energy has bled money at an alarming rate of over $100 million per month and has operated at less than 80% capacity for several years. However, with the recent surge in crude oil prices, the company’s fortunes appear to have shifted. Despite this positive development, concerns remain regarding the reduced demand for energy driven by the increasing adoption of electric vehicles.
Debt and Financing
PBF Energy has $5.5 billion in debt, which most analysts consider excessive leverage. This debt burden has been a significant concern for investors and may impact the company’s ability to withstand future market fluctuations.
Recent Market Events
The impact of Hurricane Ida on Louisiana’s energy infrastructure two months ago posed additional challenges for PBF Energy. Industry observers are monitoring the company’s preparedness for potential seasonal fluctuations in crude oil demand.
Forecast and Recommendations
Our team has analyzed various indicators, including the 52-week boundaries, analyst forecasts, drawdowns, and correlation analysis. We believe that traders can leverage these factors to make informed decisions regarding the purchase or sale of PBF Energy stock.
- Investors are advised to follow the predictive blue line and use it as their primary trading guide.
- Traders should aim for sharp breaks in the asset price, ensuring alignment with both the predictive blue line and Neural Net indicators.
- Market participants are recommended not to make trading decisions based on emotions or media speculation.
Disclaimer
Trading carries significant risks. It is crucial for investors to understand that this analysis serves as a tool for personal consideration and does not constitute official advising. VantagePoint’s campaign materials do not provide individualized advice, nor should they be used as a substitute for independent research by readers.
Trading Suggestions:
1. The company may experience headwinds at the recent 52-week high of $18.78.
2. Traders will need to re-evaluate their approach after the next earnings call on October 28th, potentially incorporating changes in analyst estimates and intermarket analysis results.
Ultimately, traders are advised to follow the predictive blue line as a primary trading guide. This allows them to capitalize on opportunities while minimizing potential losses. Investors should maintain good money management practices across all trades to effectively navigate market fluctuations.