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Phillips 66 (PSX) Ascends But Remains Behind Market: Some Facts to Note

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The latest trading session saw Phillips 66 (PSX - Free Report) ending at $126.47, denoting a +0.78% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 1.77%. Elsewhere, the Dow gained 1.42%, while the tech-heavy Nasdaq added 2.28%.

Shares of the oil refiner witnessed a loss of 2.55% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 0.43% and outperforming the S&P 500's loss of 5.73%.

The investment community will be closely monitoring the performance of Phillips 66 in its forthcoming earnings report. In that report, analysts expect Phillips 66 to post earnings of $0.04 per share. This would mark a year-over-year decline of 97.89%. At the same time, our most recent consensus estimate is projecting a revenue of $30.28 billion, reflecting a 16.9% fall from the equivalent quarter last year.

PSX's full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $124.38 billion. These results would represent year-over-year changes of +1.79% and -14.51%, respectively.

Any recent changes to analyst estimates for Phillips 66 should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 7.89% lower. Phillips 66 currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Phillips 66 currently has a Forward P/E ratio of 20.04. Its industry sports an average Forward P/E of 16.69, 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 5.01. 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 2.77 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 33% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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