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

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In the latest trading session, Phillips 66 (PSX - Free Report) closed at $115.19, marking a -0.91% move from the previous day. This change lagged the S&P 500's 0.85% loss on the day. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, lost 0.96%.

Heading into today, shares of the oil refiner had lost 3.18% over the past month, lagging the Oils-Energy sector's gain of 0.48% and the S&P 500's loss of 3.02% in that time.

Investors will be eagerly watching for the performance of Phillips 66 in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 27, 2023. The company's upcoming EPS is projected at $4.97, signifying a 23.07% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $34.38 billion, reflecting a 29.49% fall from the equivalent quarter last year.

PSX's full-year Zacks Consensus Estimates are calling for earnings of $16.15 per share and revenue of $138.87 billion. These results would represent year-over-year changes of -14.05% and -20.96%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Phillips 66. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.05% higher. Phillips 66 is currently sporting a Zacks Rank of #2 (Buy).

With respect to valuation, Phillips 66 is currently being traded at a Forward P/E ratio of 7.2. This expresses a premium compared to the average Forward P/E of 6.98 of its industry.

It is also worth noting that PSX currently has a PEG ratio of 0.38. 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. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 0.99.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 16, placing it within the top 7% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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