PBF Energy (PBF) 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.

Analysts' growing optimism on the earnings prospects of this refiner is driving estimates higher, which 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 -- is principally built on this insight.

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

The earnings estimate of $5.01 per share for the current quarter represents a change of +1,063.5% from the number reported a year ago.

Over the last 30 days, two estimates have moved higher for PBF Energy while one has gone lower. As a result, the Zacks Consensus Estimate has increased 42.74%.

Current-Year Estimate Revisions

The company is expected to earn $10.94 per share for the full year, which represents a change of +364.9% from the prior-year number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, three estimates have moved up for PBF Energy versus one negative revision. This has pushed the consensus estimate 27.92% 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

While strong estimate revisions for PBF Energy have attracted decent investments and pushed the stock 51.2% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.

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PBF Energy Inc. (PBF): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research