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Phillips 66 (PSX) Dips More Than Broader Market: What You Should Know

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Phillips 66 (PSX - Free Report) ended the recent trading session at $162.49, demonstrating a -1.77% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.46%. On the other hand, the Dow registered a loss of 1.24%, and the technology-centric Nasdaq decreased by 1.63%.

Shares of the oil refiner have appreciated by 7.14% over the course of the past month, underperforming the Oils-Energy sector's gain of 8.14% and outperforming the S&P 500's gain of 1.6%.

Market participants will be closely following the financial results of Phillips 66 in its upcoming release. The company plans to announce its earnings on April 26, 2024. The company is expected to report EPS of $2.32, down 44.89% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $31.67 billion, reflecting a 9.75% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.20 per share and revenue of $133.87 billion. These totals would mark changes of -16.51% and -10.69%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.9% higher. Phillips 66 currently has a Zacks Rank of #3 (Hold).

Investors should also note Phillips 66's current valuation metrics, including its Forward P/E ratio of 12.53. Its industry sports an average Forward P/E of 12.33, so one might conclude that Phillips 66 is trading at a premium comparatively.

We can also see that PSX currently has a PEG ratio of 2.09. 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. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 1.9.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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