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Par Petroleum (PARR) Gains But Lags Market: What You Should Know

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In the latest trading session, Par Petroleum (PARR - Free Report) closed at $29.20, marking a +0.31% move from the previous day. The stock lagged the S&P 500's daily gain of 1.44%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 5.21%.

Prior to today's trading, shares of the independent oil and gas company had lost 0.14% over the past month. This has was narrower than the Oils-Energy sector's loss of 2.11% and lagged the S&P 500's gain of 2.28% in that time.

Wall Street will be looking for positivity from Par Petroleum as it approaches its next earnings report date. The company is expected to report EPS of $2.16, up 507.55% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.51 billion, up 11.99% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.24 per share and revenue of $6.13 billion. These totals would mark changes of -8.7% and -16.24%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Par Petroleum. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.6% higher within the past month. Par Petroleum is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Par Petroleum currently has a Forward P/E ratio of 4.02. This represents a discount compared to its industry's average Forward P/E of 6.59.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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