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Bear of the Day: Par Pacific (PARR)

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Do not for one second believe that a single OPEC headline is suddenly going to reverse oil prices. High prices are not exactly a detriment to them. However, we may be past the peak hype of where oil might go in the short-term. That does not mean that you should avoid investing in the sector. To the contrary, it is probably a great time to stick with it, you just have to do it the right way. Try to avoid stocks in the energy sector with weak earnings trends. If a company can’t make a ton of money when oil is over $100 a barrel, what happens when it comes back down to Earth?

Today’s Bear of the Day is an oil stock that has seen estimates move to the downside while oil is on the rise. I’m talking about Par Pacific (PARR - Free Report) . Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through three segments: Refining, Retail, and Logistics.

The stock is currently a Zacks Rank #5 (Strong Sell). The reason for the unfavorable rank is the negative earnings estimate revisions coming from analysts recently. Over the last thirty days, two analysts have cut their earnings estimates for the current year while one has done so for next year. The impact to current year Zacks Consensus Estimate is the most dramatic. The Zacks Consensus Estimate has dropped from 67 cents sixty days ago to 14 cents today. Next year’s number is off from $1.26 to $1 even. That means that the current PE sits all the way up at 94x. That will reel in a bit next year with the $1 target. That EPS growth is expected to come on a contraction of 2.73% to revenue.

The Oil and Gas – Refining and Marketing industry ranks in the Top 33% of our Zacks Consensus Estimate. Investors looking for other stocks within the same industry that are in the good graces of our Zacks Rank should check out Zacks Rank #1 (Strong Buy) stocks Marathon Petroleum (MPC - Free Report) and Valero Energy (VLO - Free Report) .

See More Zacks Research for These Tickers

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Valero Energy Corporation (VLO) - free report >>

Marathon Petroleum Corporation (MPC) - free report >>

Par Pacific Holdings, Inc. (PARR) - free report >>

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