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Phillips 66 (PSX) Dips More Than Broader Markets: What You Should Know

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Phillips 66 (PSX - Free Report) closed at $84.33 in the latest trading session, marking a -1.56% move from the prior day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 1.04%, and the Nasdaq, a tech-heavy index, added 0.67%.

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 -$0.20, down 106.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.50 billion, down 49.16% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.17 per share and revenue of $77.02 billion, which would represent changes of -73.04% and -29.7%, respectively, from the prior year.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.79% lower. PSX is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note PSX's current valuation metrics, including its Forward P/E ratio of 39.48. For comparison, its industry has an average Forward P/E of 23.05, which means PSX is trading at a premium to the group.

Meanwhile, PSX's PEG ratio is currently 7.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 7.56 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 90, putting it in the top 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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