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Why the Market Dipped But Phillips 66 (PSX) Gained Today

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In the latest market close, Phillips 66 (PSX - Free Report) reached $135.75, with a +1.09% movement compared to the previous day. This change outpaced the S&P 500's 0.8% loss on the day. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.

The oil refiner's shares have seen an increase of 5.16% over the last month, surpassing the Oils-Energy sector's gain of 0.83% and the S&P 500's gain of 3.4%.

Analysts and investors alike will be keeping a close eye on the performance of Phillips 66 in its upcoming earnings disclosure. The company's earnings report is set to go public on January 31, 2024. It is anticipated that the company will report an EPS of $2.67, marking a 33.25% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $34.76 billion, indicating a 15.02% downward movement from the same quarter last year.

Investors should also pay attention to any latest changes in analyst estimates for Phillips 66. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.34% decrease. Phillips 66 is currently a Zacks Rank #3 (Hold).

In terms of valuation, Phillips 66 is presently being traded at a Forward P/E ratio of 10.29. This signifies no noticeable deviation in comparison to the average Forward P/E of 10.29 for its industry.

One should further note that PSX currently holds a PEG ratio of 1.72. 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 was holding an average PEG ratio of 1.6 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% 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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