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Phillips 66 (PSX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Phillips 66 (PSX - Free Report) closed at $100.28, marking a +1.52% move from the previous day. This change outpaced the S&P 500's 1.42% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 5.16%.
Coming into today, shares of the oil refiner had lost 3.69% in the past month. In that same time, the Oils-Energy sector lost 4.02%, while the S&P 500 gained 0.27%.
Wall Street will be looking for positivity from Phillips 66 as it approaches its next earnings report date. This is expected to be May 3, 2023. In that report, analysts expect Phillips 66 to post earnings of $3.73 per share. This would mark year-over-year growth of 182.58%. Meanwhile, our latest consensus estimate is calling for revenue of $35.08 billion, down 4.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.72 per share and revenue of $144.79 billion, which would represent changes of -16.34% and -17.59%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Phillips 66. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 3.12% higher. Phillips 66 is currently a Zacks Rank #3 (Hold).
In terms of valuation, Phillips 66 is currently trading at a Forward P/E ratio of 6.28. Its industry sports an average Forward P/E of 6.55, so we one might conclude that Phillips 66 is trading at a discount comparatively.
We can also see that PSX currently has a PEG ratio of 0.33. 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. PSX's industry had an average PEG ratio of 0.68 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.