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

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Phillips 66 (PSX - Free Report) closed at $78.83 in the latest trading session, marking a +0.73% move from the prior day. This move outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.66%.

Wall Street will be looking for positivity from PSX as it approaches its next earnings report date. The company is expected to report EPS of -$0.19, down 106.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.50 billion, down 49.16% from the year-ago period.

PSX's full-year Zacks Consensus Estimates are calling for earnings of $2.29 per share and revenue of $77.02 billion. These results would represent year-over-year changes of -71.55% and -29.7%, respectively.

Investors should also note any recent changes to analyst estimates for PSX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 6.64% higher. PSX is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note PSX's current valuation metrics, including its Forward P/E ratio of 34.24. For comparison, its industry has an average Forward P/E of 23.57, which means PSX is trading at a premium to the group.

Also, we should mention that PSX has a PEG ratio of 6.56. 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 industry currently had an average PEG ratio of 5.22 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 138, putting it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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