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Phillips 66 (PSX) Registers a Bigger Fall Than the Market: Important Facts to Note

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Phillips 66 (PSX - Free Report) closed the most recent trading day at $130.78, moving -1.31% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. On the other hand, the Dow registered a loss of 0.59%, and the technology-centric Nasdaq increased by 0.45%.

Shares of the oil refiner witnessed a gain of 7.98% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.82%, and the S&P 500's gain of 3.44%.

The upcoming earnings release of Phillips 66 will be of great interest to investors. The company is expected to report EPS of $2.18, up 6.86% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $30.13 billion, indicating a 16.69% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.87 per share and revenue of $129.1 billion. These totals would mark changes of -20.81% and -11.27%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.74% higher. At present, Phillips 66 boasts a Zacks Rank of #3 (Hold).

Investors should also note Phillips 66's current valuation metrics, including its Forward P/E ratio of 27.2. This indicates a premium in contrast to its industry's Forward P/E of 17.78.

Meanwhile, PSX's PEG ratio is currently 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 1.51.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons 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.

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


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