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

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In the latest trading session, Phillips 66 (PSX - Free Report) closed at $86.78, marking a +0.56% move from the previous day. This change outpaced the S&P 500's 1.42% loss on the day. Meanwhile, the Dow lost 0.49%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Heading into today, shares of the oil refiner had gained 22.38% over the past month, outpacing the Oils-Energy sector's gain of 8.29% and the S&P 500's gain of 0.39% in that time.

Phillips 66 will be looking to display strength as it nears its next earnings release, which is expected to be January 28, 2022. In that report, analysts expect Phillips 66 to post earnings of $1.86 per share. This would mark year-over-year growth of 260.34%. Meanwhile, our latest consensus estimate is calling for revenue of $22.49 billion, up 34.11% from the prior-year quarter.

Any recent changes to analyst estimates for Phillips 66 should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 4.48% higher. Phillips 66 currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 11.93 right now. This represents a discount compared to its industry's average Forward P/E of 18.75.

We can also see that PSX currently has a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.62 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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