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Phillips 66 (PSX) Moves 7.2% Higher: Will This Strength Last?

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Phillips 66 (PSX - Free Report) shares ended the last trading session 7.2% higher at $139.98. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.3% loss over the past four weeks.

Shares of Phillips 66 advanced in the latest trading session, supported by a combination of company-specific catalysts and an improving operational outlook. The rally reflects the company’s focus on stronger execution within its refining segment, driven by higher utilization rates, enhanced reliability and ongoing cost-efficiency initiatives to boost margins and cash flow. Improved refining performance, coupled with better near-term earnings visibility, appears to be underpinning the stock’s upward momentum.

This oil refiner is expected to post quarterly earnings of $2.24 per share in its upcoming report, which represents a year-over-year change of +1593.3%. Revenues are expected to be $30.09 billion, down 11.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Phillips 66, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PSX going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Phillips 66 is part of the Zacks Oil and Gas - Refining and Marketing industry. Par Petroleum (PARR - Free Report) , another stock in the same industry, closed the last trading session 4% higher at $37.26. PARR has returned -18% in the past month.

For Par Petroleum, the consensus EPS estimate for the upcoming report has changed -4.8% over the past month to $2.09. This represents a change of +364.6% from what the company reported a year ago. Par Petroleum currently has a Zacks Rank of #3 (Hold).


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