The Russell 2000 is flawed — this ETF plays it in a better way for quality
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 24 2024
0mins
Should l Buy PBF?
Source: MarketWatch
Performance Benchmarking: The Russell 2000 Index is commonly used as a benchmark for small-cap mutual funds and ETFs, but it includes many unprofitable companies, raising concerns about its quality.
Harbor AlphaEdge ETF Approach: The Harbor AlphaEdge Small Cap Earners ETF addresses this issue by focusing on profitable companies within the Russell 2000 and prioritizing earnings over market value in its portfolio weighting.
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Analyst Views on PBF
Wall Street analysts forecast PBF stock price to fall
8 Analyst Rating
2 Buy
4 Hold
2 Sell
Hold
Current: 50.090
Low
23.00
Averages
33.63
High
42.00
Current: 50.090
Low
23.00
Averages
33.63
High
42.00
About PBF
PBF Energy Inc. is an independent refiner in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. The Company operates as a refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products. It operates through two segments: Refining and Logistics. The Refining segment includes the operations of its oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, Chalmette, Louisiana, Torrance, California and Martinez, California. The Logistics segment includes the operations of PBF Logistics LP, an indirect wholly owned subsidiary of PBF Energy and PBF LLC, which owns or leases, operates, develops, and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities, and similar logistics assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Impact of Strait of Hormuz Closure on Oil Prices
- Crude Supply Tightness: The IEA reports that 25% of global seaborne oil flows through the Strait of Hormuz, and the prospect of its closure has driven oil prices up, prompting investors to consider U.S. companies like Devon Energy and Diamondback Energy to mitigate supply risks and secure capital returns.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and its closure will lead to rising prices worldwide, particularly impacting Europe; investors might look to Norway's Equinor and Australia's Woodside Energy to fill the supply gap in Asia.
- Refining Profit Surge: Refining stocks such as PBF Energy and Valero Energy have seen significant gains in 2026, with the 3-2-1 crack spread soaring from $20 at the start of the year to over $58, indicating that Asian refiners are facing higher crude procurement costs due to product shortages from the Gulf.
- Fertilizer Price Surge: The blockade of the Strait has stranded many fertilizer-laden ships, causing prices to soar and severely impacting Asian and African countries reliant on Gulf fertilizers; investors are turning to U.S. producers like CF Industries to navigate the tightening global fertilizer supply situation.
See More
Closure of Strait of Hormuz Disrupts Global Energy Markets
- Oil Price Surge: The International Energy Agency reports that 25% of the world's seaborne oil flows through the Strait of Hormuz, and its closure has led to a sharp increase in oil prices, destabilizing global energy markets, particularly affecting import-dependent nations.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and Iran's threats to energy infrastructure create uncertainty in LNG supply, potentially driving up global prices, especially pressuring the European market.
- Refining Sector Gains: Due to crude oil supply shortages, the refining crack spread has skyrocketed from $20 at the beginning of the year to $58, significantly boosting stocks of refining companies like PBF Energy and Valero Energy, indicating strong profit potential in the current market environment.
- Fertilizer Price Increases: The blockade of the Strait has left many fertilizer-laden ships stranded, causing fertilizer prices to soar, which poses a significant challenge for Asian and African countries reliant on Gulf fertilizers, prompting investors to focus on U.S. producers like CF Industries.
See More
Analysis of PBF Energy's Dividend and Volatility
- Dividend Yield Expectation: PBF Energy's latest dividend yield is projected at 2.2%, and its sustainability must be assessed in conjunction with the company's historical profitability fluctuations, providing investors with a reasonable return expectation.
- Historical Volatility Analysis: PBF's trading history over the past twelve months indicates a current stock price of $49.53, with a calculated volatility of 67%, suggesting significant price fluctuations and relatively high investment risk.
- Options Trading Strategy: Given the current volatility, selling September covered calls at a $60 strike price may pose risks for investors, as any price increase beyond $60 would forfeit potential upside gains.
- Market Sentiment and Options Myths: While most options may expire worthless, combining fundamental analysis with historical data allows investors to better assess the risks and rewards of options trading.
See More
Delek US Shares Surge Amid Rising Oil Prices and Analyst Upgrade
- Stock Surge: Delek US (DK) shares rose by 8.6% today to $45.91, driven by rising oil prices and a Bank of America analyst raising the price target from $28 to $40, although the analyst maintains an underweight rating, indicating market caution.
- 2026 Performance: The stock has surged nearly 55% so far in 2026, closely linked to a significant increase in refining crack spreads, particularly following the onset of hostilities in the Persian Gulf, which has widened the gap between crude oil costs and refined product prices.
- Supply Chain Impact: The conflict in the Persian Gulf has led to the near closure of the Strait of Hormuz, creating supply issues for global refiners; however, Delek US benefits from sourcing crude oil from the Permian Basin and East Texas, ensuring raw material supply for its four refineries.
- Geopolitical Risk Hedge: While a resolution to the conflict could lead to a significant decline in crack spreads, Delek US remains a strong hedge against geopolitical risks in the current environment, especially as persistently high oil prices may lead to demand destruction for transportation fuels.
See More
Delek US Shares Rise as Refining Crack Spread Soars
- Stock Price Surge: Delek US (NYSE: DK) shares rose by 8.6% today, driven by rising oil prices and a BofA analyst raising the price target from $28 to $40, although the analyst maintained an underweight rating, indicating a cautious market outlook.
- Refining Profit Boost: The significant increase in refining crack spreads has led to a nearly 55% rise in Delek US's stock price so far in 2026, reflecting the widening gap between crude oil costs and refined product prices, which enhances profitability.
- Geopolitical Risk Hedge: The closure of the Strait of Hormuz due to ongoing Gulf conflicts has created supply issues for global refiners, but Delek US's reliance on crude from the Permian Basin and East Texas ensures a steady supply for its four refineries, effectively hedging against geopolitical risks.
- Uncertain Future Outlook: While the current crack spread benefits Delek US, a resolution to the conflict could lead to Gulf energy and refined products re-entering the market, potentially causing a significant decline in crack spreads, and persistently high oil prices may lead to demand destruction for transportation fuels, posing challenges for the company's future performance.
See More
PBF Energy Officer Plans to Sell $3.15 Million in Common Stock via Form 144
Stock Sale Announcement: Canty Trecia Mintends, an officer at PB Energy, plans to sell 62,999 shares of the company's common stock.
Market Value: The total market value of the shares being sold is approximately $3.15 million.
See More
Impact of Strait of Hormuz Closure on Oil Prices
- Crude Supply Tightness: The IEA reports that 25% of global seaborne oil flows through the Strait of Hormuz, and the prospect of its closure has driven oil prices up, prompting investors to consider U.S. companies like Devon Energy and Diamondback Energy to mitigate supply risks and secure capital returns.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and its closure will lead to rising prices worldwide, particularly impacting Europe; investors might look to Norway's Equinor and Australia's Woodside Energy to fill the supply gap in Asia.
- Refining Profit Surge: Refining stocks such as PBF Energy and Valero Energy have seen significant gains in 2026, with the 3-2-1 crack spread soaring from $20 at the start of the year to over $58, indicating that Asian refiners are facing higher crude procurement costs due to product shortages from the Gulf.
- Fertilizer Price Surge: The blockade of the Strait has stranded many fertilizer-laden ships, causing prices to soar and severely impacting Asian and African countries reliant on Gulf fertilizers; investors are turning to U.S. producers like CF Industries to navigate the tightening global fertilizer supply situation.
See More
Closure of Strait of Hormuz Disrupts Global Energy Markets
- Oil Price Surge: The International Energy Agency reports that 25% of the world's seaborne oil flows through the Strait of Hormuz, and its closure has led to a sharp increase in oil prices, destabilizing global energy markets, particularly affecting import-dependent nations.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and Iran's threats to energy infrastructure create uncertainty in LNG supply, potentially driving up global prices, especially pressuring the European market.
- Refining Sector Gains: Due to crude oil supply shortages, the refining crack spread has skyrocketed from $20 at the beginning of the year to $58, significantly boosting stocks of refining companies like PBF Energy and Valero Energy, indicating strong profit potential in the current market environment.
- Fertilizer Price Increases: The blockade of the Strait has left many fertilizer-laden ships stranded, causing fertilizer prices to soar, which poses a significant challenge for Asian and African countries reliant on Gulf fertilizers, prompting investors to focus on U.S. producers like CF Industries.
See More
Analysis of PBF Energy's Dividend and Volatility
- Dividend Yield Expectation: PBF Energy's latest dividend yield is projected at 2.2%, and its sustainability must be assessed in conjunction with the company's historical profitability fluctuations, providing investors with a reasonable return expectation.
- Historical Volatility Analysis: PBF's trading history over the past twelve months indicates a current stock price of $49.53, with a calculated volatility of 67%, suggesting significant price fluctuations and relatively high investment risk.
- Options Trading Strategy: Given the current volatility, selling September covered calls at a $60 strike price may pose risks for investors, as any price increase beyond $60 would forfeit potential upside gains.
- Market Sentiment and Options Myths: While most options may expire worthless, combining fundamental analysis with historical data allows investors to better assess the risks and rewards of options trading.
See More
Delek US Shares Surge Amid Rising Oil Prices and Analyst Upgrade
- Stock Surge: Delek US (DK) shares rose by 8.6% today to $45.91, driven by rising oil prices and a Bank of America analyst raising the price target from $28 to $40, although the analyst maintains an underweight rating, indicating market caution.
- 2026 Performance: The stock has surged nearly 55% so far in 2026, closely linked to a significant increase in refining crack spreads, particularly following the onset of hostilities in the Persian Gulf, which has widened the gap between crude oil costs and refined product prices.
- Supply Chain Impact: The conflict in the Persian Gulf has led to the near closure of the Strait of Hormuz, creating supply issues for global refiners; however, Delek US benefits from sourcing crude oil from the Permian Basin and East Texas, ensuring raw material supply for its four refineries.
- Geopolitical Risk Hedge: While a resolution to the conflict could lead to a significant decline in crack spreads, Delek US remains a strong hedge against geopolitical risks in the current environment, especially as persistently high oil prices may lead to demand destruction for transportation fuels.
See More
Delek US Shares Rise as Refining Crack Spread Soars
- Stock Price Surge: Delek US (NYSE: DK) shares rose by 8.6% today, driven by rising oil prices and a BofA analyst raising the price target from $28 to $40, although the analyst maintained an underweight rating, indicating a cautious market outlook.
- Refining Profit Boost: The significant increase in refining crack spreads has led to a nearly 55% rise in Delek US's stock price so far in 2026, reflecting the widening gap between crude oil costs and refined product prices, which enhances profitability.
- Geopolitical Risk Hedge: The closure of the Strait of Hormuz due to ongoing Gulf conflicts has created supply issues for global refiners, but Delek US's reliance on crude from the Permian Basin and East Texas ensures a steady supply for its four refineries, effectively hedging against geopolitical risks.
- Uncertain Future Outlook: While the current crack spread benefits Delek US, a resolution to the conflict could lead to Gulf energy and refined products re-entering the market, potentially causing a significant decline in crack spreads, and persistently high oil prices may lead to demand destruction for transportation fuels, posing challenges for the company's future performance.
See More
PBF Energy Officer Plans to Sell $3.15 Million in Common Stock via Form 144
Stock Sale Announcement: Canty Trecia Mintends, an officer at PB Energy, plans to sell 62,999 shares of the company's common stock.
Market Value: The total market value of the shares being sold is approximately $3.15 million.
See More
