Markets

Insider Trading

Hedge Funds

Retirement

Opinion

PBF Energy Inc. (PBF): Most Undervalued Stock to Consider for Investment

We recently compiled a list of the 7 Worst Beaten Down Stocks to Invest In. In this article, we are going to take a look at where PBF Energy Inc. (NYSE:PBF) stands against the other the Carl Icahn Stock Portfolio.

The US stock market remains resilient, with the upward momentum intact at the start of the year’s final quarter. The rally to record highs has come against the backdrop of investors betting on themes like artificial intelligence and interest rate cuts on the back of impressive earnings results.

Nevertheless, the recent market boom has raised concerns regarding possible market overvaluation. The market has seen substantial gains, with the S&P 500 up by more than 20% and flirting with record highs. Overvaluation bells are increasingly ringing, given that the Bull Run persisted despite interest rates at record highs.

READ ALSO: 8 Best Warren Buffett Stocks to Buy According to Analysts and 8 Best Value Stocks to Invest In According To Warren Buffett.

The US Federal Reserve cutting interest rates by 50 basis points has since acted as the latest catalyst sustaining the upward trajectory in the market. The spike results from several things, such as rising investor confidence and optimism regarding the economy’s future as the Fed moves to bring interest rates down.

The Federal Reserve’s move to reduce interest rates by half a percentage point in September had a significant effect on the market. The move, driven by worries about the condition of the job market and slowing manufacturing, also raised serious doubts about the health of the US economy. Although some experts think a reduction of half a percentage point is too extreme, others believe it could be the much-needed boost for some of the worst beaten-down stocks to invest in.

Given that the market always tends to rise with a perfect record of 7 out of the 7 times such cuts have occurred, it underscores why investors should be bullish about some of the worst-beaten stocks to invest in. According to Vance Howard of Howard Capital Management, there is an 83% chance of upward movement as the Fed continues to trim interest rates.

Some of the sectors Vance Howard believes are well poised to benefit from the low interest rate environment include real estate and utilities under pressure before the Fed cut. Regarding particular industries to watch, Howard pointed out that financials would probably get stronger after rate cuts. He clarified that although financial stocks usually bounce back and keep rising following a rate cut, they may initially decline. He also advised sticking with technology stock investments.

While a lower interest rate environment could be a boon for some beaten-down stocks, investors should be extremely cautious given the prevailing economic conditions. It’s essential to look at the overall market movements and possible dangers.

Looking forward to the final three months of the year, veteran investor and the CEO of Wise Private Singapore, Kevin Tang, has warned about the potential impact of multiple uncertainties on the horizon. The forthcoming U.S. elections, increasing geopolitical tensions, and worries about an economic downturn are headwinds investors believe could weigh heavily on the market, even on the interest rate cuts that provide support.

Moreover, the forthcoming US elections are making analysts and economists jittery as the market becomes more unstable, given the two candidates’ economic policies. Tom Lee, the managing partner and chief research officer at Fundstrat Global Advisors, recently shared his views on CNBC, suggesting that investing in small-cap stocks and equities is preferable to bonds for their higher growth potential, provided the election uncertainty continues.

Meanwhile, analysts at Morgan Stanley believe that Chinese stocks could experience a more sustained rally following the recent wave of stimulus measures. They anticipate a rally of at least 10% in the near future and possibly even more. If there is further clarity on earnings improvements, the stocks could rally even further, with valuations reaching levels last seen during the economy’s reopening from November 2022 to March 2023.

Our Methodology

To make our list of the best beaten-down stocks, we first made a list of all stocks that have set a new 52-week low and have a market capitalization of more than $300 million. Then, we also considered their year-to-date share price performance. Finally, this list of beaten-down stocks was ranked in descending order of the number of hedge funds that had bought the shares in Q2 2024, and the least popular stocks according to hedge funds were chosen.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

PBF Energy Inc. (NYSE:PBF)

Current share price: $30.95

52 Week Range: $30.58 – $62.88

Year to date Gain as of October 1: – 28.21%

Number of Hedge Fund Holders: 32

PBF Energy Inc. (NYSE:PBF) is an energy company that engages in refining and supply of petroleum products. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt.

Unfavourable market conditions, like declining RIN, adjusted crack spreads, and prolonged maintenance activities impacted the company’s Q2 earnings. PBF Energy Inc. (NYSE:PBF) delivered a loss from operations of $74.6 million compared to an income of $1.3 billion it delivered last year in the same quarter. Quarterly revenues declined to $8.74 billion from $9.16 billion in the prior year quarter but were above the consensus estimate of $8.72 billion.

Nevertheless, PBF Energy Inc. (NYSE:PBF) maintained a healthy cash balance sheet in spite of these difficulties, aiming to keep it between $1 billion and $1.5 billion. Despite the disappointing Q2 results, PBF Energy remains upbeat about the future.

By the end of the year, PBF Energy Inc. (NYSE:PBF) intends to double its output from the Trans Mountain Expansion pipeline, and it anticipates increased demand in the second half of the year. Additionally, the company has reiterated its commitment to continue returning value to shareholders through dividends and repurchases. Consequently, it confirmed a $0.25 a share dividend payable throughout various market conditions. The stock also yields 3.23%, which is ideal for income-focused investors.

In the second quarter of 2024, 32 out of the 912 hedge funds tracked by Insider Monkey’s database purchased shares of PBF Energy Inc. (NYSE:PBF). The largest investment came from John Over deck and David Siegel’s Two Sigma Advisors, which invested $75.85 million in the company.

Overall PBF ranks 4th on our list of 7 Worst Beaten Down Stocks to Invest In. While we acknowledge the potential of PBF as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PBF, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article is originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

The #1 Lithium Stock to Watch Going into 2025

A Recent Monumental Shift in the Mining Arena has Shined a Big Spotlight on Lithium!

Many eyes are once again locked on the critical mineral since Rio Tinto, the 2nd largest mining company in the world, acquired Arcadium Lithium PLC. The acquisition immediately catapulted Rio Tinto to becoming the world’s 3rd largest lithium producer.

Why would a big mining giant like Rio Tinto be interested in acquiring a lithium producer?

Because they recognize there is a tremendous need for lithium in the world’s energy transition. Rio Tinto CEO Jakob Stausholm said Rio is confident that long-term demand for lithium will be strong.

This is the largest mining deal in the world since 2007 and marks a significant milestone to the lithium industry as it depicts a massive shift in sentiment from the big mining companies.

As the race to find secure lithium supplies continues, an underfollowed lithium explorer is causing quite the commotion as Wall Street learns about the company’s disruptive lithium land package in Brazil!

Why is Brazil Important?

In less than two years, Brazil emerged from ZERO exports to the fifth-largest lithium exporter in 2023 with projections of a fivefold production increase in the next five years! To say that Brazil is undergoing a lithium boom is an understatement!

Lithium exploration is accelerating in Brazil, in the wake of the relaxing of regulations and growing demand for the mineral that’s crucial to the global transition to electric vehicles. The country has relaxed its lithium export regulations, which has attracted global investment and transformed the country into a major producer of the critical element.

Brazil is being noticed for its prolific lithium appeal…

In August 2024, Australian lithium giant Pilbara Minerals announced its plans to acquire Latin Resources for approximately A$559.9m ($371.12m) to diversify its operations.

Click to continue reading…