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Phillips 66 (PSX) Gains As Market Dips: What You Should Know
Phillips 66 (PSX - Free Report) closed the most recent trading day at $107.01, moving +0.07% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 3.22%.
Prior to today's trading, shares of the oil refiner had gained 2.89% over the past month. This has lagged the Oils-Energy sector's gain of 3.05% and the S&P 500's gain of 4.64% in that time.
Phillips 66 will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2023. In that report, analysts expect Phillips 66 to post earnings of $4.34 per share. This would mark year-over-year growth of 47.62%. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.41% higher. Phillips 66 currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Phillips 66 currently has a Forward P/E ratio of 7.18. This valuation marks a discount compared to its industry's average Forward P/E of 8.37.
We can also see that PSX currently has a PEG ratio of 0.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.84 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 65, putting it in the top 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.