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Phillips 66 (PSX) Stock Sinks As Market Gains: What You Should Know

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Phillips 66 (PSX - Free Report) closed at $100.40 in the latest trading session, marking a -0.04% move from the prior day. This move lagged the S&P 500's daily gain of 1.19%. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq lost 0.2%.

Prior to today's trading, shares of the oil refiner had gained 32.17% over the past month. This has outpaced the Oils-Energy sector's gain of 8.42% and the S&P 500's loss of 0.84% in that time.

Phillips 66 will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2022. The company is expected to report EPS of $4.98, up 56.6% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $35.26 billion, up 12.05% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.41 per share and revenue of $136.99 billion, which would represent changes of +205.44% and +19.28%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2% higher. Phillips 66 is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Phillips 66 is currently trading at a Forward P/E ratio of 5.77. For comparison, its industry has an average Forward P/E of 5.77, which means Phillips 66 is trading at a no noticeable deviation to the group.

It is also worth noting that PSX currently has a PEG ratio of 0.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.46 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 2, putting it in the top 1% 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.

To follow PSX in the coming trading sessions, be sure to utilize Zacks.com.


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