SUN - Here's Why Hold Strategy is Apt for PBF Energy Now | Benzinga
PBF Energy (NYSE: PBF) has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
The stock, currently carrying a Zacks Rank #3 (Hold), has rallied 10.4% in the past six months compared with 6.4% growth of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
Factors Driving the Stock
Favorable Style Score
PBF Energy has an impressive Value Score of A. Value Score helps find stocks that are undervalued. Back-tested results have shown that stocks with a favorable Value Score and a solid Zacks Rank are the best investment bets.
Impressive Earnings Surprise History
PBF Energy's bottom line has outpaced estimates in three of the trailing four quarters and missed the same once.
Strong Cash Position
PBF's balance sheet is fortified with a significant cash reserve of $1.4 billion as of Mar 31, 2024. This strong liquidity position allows the company to navigate market fluctuations and invest in growth opportunities without compromising financial stability. Additionally, the company has $1.2 billion of total debt, indicating a healthy net cash position, which provides a buffer against economic uncertainties and supports strategic initiatives.
Consistent Shareholder Returns
PBF Energy has demonstrated a commitment to returning value to shareholders through dividends and share repurchases. In the first quarter of 2024, the company declared a quarterly dividend of $0.25 per share, an increase from previous quarters, and repurchased 2.6 million shares for around $125 million. This approach not only signals confidence in the company's financial health but also enhances shareholder value by reducing the number of outstanding shares.
Renewable Energy Initiatives
The company's strategic diversification into renewable fuels positions it well for growth in the energy transition landscape. The St. ...