PBF Energy (PBF Quick QuotePBF - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this refiner, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For PBF Energy, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $3.20 per share, which is a change of +410.7% from the year-ago reported number.

Over the last 30 days, the Zacks Consensus Estimate for PBF Energy has increased 50.71% because three estimates have moved higher while one has gone lower.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $6.21 per share, representing a year-over-year change of +250.4%.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, four estimates have moved up for PBF Energy versus two negative revisions. This has pushed the consensus estimate 49.24% higher.

Favorable Zacks Rank

The promising estimate revisions have helped PBF Energy earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on PBF Energy because of its solid estimate revisions, as evident from the stock's 8.9% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.