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Phillips 66 (PSX) Gains As Market Dips: What You Should Know
Phillips 66 (PSX - Free Report) closed at $102.71 in the latest trading session, marking a +0.2% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.56%. At the same time, the Dow lost 1.81%, and the tech-heavy Nasdaq lost 4.66%.
Prior to today's trading, shares of the oil refiner had lost 0.13% over the past month. This has lagged the Oils-Energy sector's gain of 6.91% and the S&P 500's gain of 3.82% in that time.
Investors will be hoping for strength from Phillips 66 as it approaches its next earnings release, which is expected to be January 31, 2023. In that report, analysts expect Phillips 66 to post earnings of $4.40 per share. This would mark year-over-year growth of 49.66%. Our most recent consensus estimate is calling for quarterly revenue of $36.85 billion, up 9.77% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 3.33% higher. Phillips 66 is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Phillips 66 is holding a Forward P/E ratio of 6.95. Its industry sports an average Forward P/E of 8.21, so we one might conclude that Phillips 66 is trading at a discount comparatively.
Meanwhile, PSX's PEG ratio is currently 0.39. 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. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.6 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.