Trade-Ideas LLC identified

PBF Energy

(

PBF

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified PBF Energy as such a stock due to the following factors:

  • PBF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.1 million.
  • PBF has traded 245,994 shares today.
  • PBF is trading at 4.53 times the normal volume for the stock at this time of day.
  • PBF is trading at a new low 5.14% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on PBF:

PBF Energy Inc., together with its subsidiaries, engages in the refining and supply of petroleum products. The stock currently has a dividend yield of 5.5%. PBF has a PE ratio of 62. Currently there are 4 analysts that rate PBF Energy a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for PBF Energy has been 2.0 million shares per day over the past 30 days. PBF Energy has a market cap of $2.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.42 and a short float of 6.7% with 3.43 days to cover. Shares are down 40.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates PBF Energy as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PBF ENERGY INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Despite the weak revenue results, PBF has outperformed against the industry average of 24.0%. Since the same quarter one year prior, revenues slightly dropped by 6.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for PBF ENERGY INC is currently extremely low, coming in at 3.15%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.04% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$20.60 million or 115.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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