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Phillips 66 (PSX) Stock Sinks As Market Gains: What You Should Know

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Phillips 66 (PSX - Free Report) closed at $61.07 in the latest trading session, marking a -0.8% move from the prior day. This change lagged the S&P 500's daily gain of 3.06%. Elsewhere, the Dow gained 2.39%, while the tech-heavy Nasdaq added 3.95%.

Coming into today, shares of the oil refiner had gained 27.53% in the past month. In that same time, the Oils-Energy sector gained 8.8%, while the S&P 500 gained 2.36%.

Investors will be hoping for strength from PSX as it approaches its next earnings release, which is expected to be May 1, 2020. On that day, PSX is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 90%. Our most recent consensus estimate is calling for quarterly revenue of $22.45 billion, down 5.09% from the year-ago period.

PSX's full-year Zacks Consensus Estimates are calling for earnings of $4.32 per share and revenue of $82.21 billion. These results would represent year-over-year changes of -46.34% and -24.97%, respectively.

Any recent changes to analyst estimates for PSX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 42.86% lower within the past month. PSX currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that PSX has a Forward P/E ratio of 14.24 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.86.

We can also see that PSX currently has a PEG ratio of 2.13. 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. PSX's industry had an average PEG ratio of 2.13 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% 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.

To follow PSX in the coming trading sessions, be sure to utilize Zacks.com.


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