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Phillips 66 (PSX) Suffers a Larger Drop Than the General Market: Key Insights

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The latest trading session saw Phillips 66 (PSX - Free Report) ending at $110.75, denoting a -1.23% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.63%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.63%.

Prior to today's trading, shares of the oil refiner had lost 8.96% over the past month. This has lagged the Oils-Energy sector's loss of 1.37% and the S&P 500's loss of 2.35% in that time.

The investment community will be closely monitoring the performance of Phillips 66 in its forthcoming earnings report. The company is scheduled to release its earnings on October 27, 2023. The company is predicted to post an EPS of $4.86, indicating a 24.77% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $34.11 billion, indicating a 30.05% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $16.22 per share and a revenue of $138.24 billion, representing changes of -13.68% and -21.32%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Phillips 66. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.77% higher. Phillips 66 is currently sporting a Zacks Rank of #2 (Buy).

With respect to valuation, Phillips 66 is currently being traded at a Forward P/E ratio of 6.91. Its industry sports an average Forward P/E of 6.85, so one might conclude that Phillips 66 is trading at a premium comparatively.

It's also important to note that PSX currently trades at a PEG ratio of 0.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 0.96 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 27, positioning it in the top 11% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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