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Phillips 66 (PSX) Stock Drops Despite Market Gains: Important Facts to Note

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Phillips 66 (PSX - Free Report) ended the recent trading session at $128.49, demonstrating a -0.49% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.22%. On the other hand, the Dow registered a loss of 0.33%, and the technology-centric Nasdaq increased by 0.76%.

Shares of the oil refiner have depreciated by 0.56% over the course of the past month, outperforming the Oils-Energy sector's loss of 11.32% and lagging the S&P 500's gain of 1.47%.

The investment community will be paying close attention to the earnings performance of Phillips 66 in its upcoming release. The company is slated to reveal its earnings on October 29, 2024. In that report, analysts expect Phillips 66 to post earnings of $1.71 per share. This would mark a year-over-year decline of 63.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.03 billion, down 20.56% from the year-ago period.

PSX's full-year Zacks Consensus Estimates are calling for earnings of $7.74 per share and revenue of $138.9 billion. These results would represent year-over-year changes of -51.04% and -7.33%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Phillips 66. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.08% lower. At present, Phillips 66 boasts a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 16.69 right now. This represents no noticeable deviation compared to its industry's average Forward P/E of 16.69.

Meanwhile, PSX's PEG ratio is currently 5.56. 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. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 2.7.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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