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

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In the latest trading session, Phillips 66 (PSX - Free Report) closed at $80.73, marking a -1.39% move from the previous day. This change lagged the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.27%.

Coming into today, shares of the oil refiner had lost 7.69% in the past month. In that same time, the Oils-Energy sector gained 1.38%, while the S&P 500 lost 9.06%.

Phillips 66 will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2022. In that report, analysts expect Phillips 66 to post earnings of $4.92 per share. This would mark year-over-year growth of 54.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.89 billion, up 14.05% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.22 per share and revenue of $155.02 billion. These totals would mark changes of +184.56% and +34.97%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Phillips 66. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 2.74% higher within the past month. Phillips 66 currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Phillips 66 is holding a Forward P/E ratio of 5.05. This represents a discount compared to its industry's average Forward P/E of 5.54.

Investors should also note that PSX has a PEG ratio of 0.41 right now. 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. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.46 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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