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Phillips 66 (PSX) Outperforms Broader Market: What You Need to Know

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Phillips 66 (PSX - Free Report) closed the latest trading day at $138.64, indicating a +1.26% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.63%.

Heading into today, shares of the oil refiner had lost 0.54% over the past month, outpacing the Oils-Energy sector's loss of 11.53% and lagging the S&P 500's gain of 4.28% in that time.

Market participants will be closely following the financial results of Phillips 66 in its upcoming release. The company plans to announce its earnings on July 30, 2024. The company is forecasted to report an EPS of $3.29, showcasing a 14.99% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $31.93 billion, reflecting a 10.66% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.47 per share and revenue of $132.91 billion. These totals would mark changes of -33.78% and -11.33%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 13.88% downward. Phillips 66 is currently sporting a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Phillips 66 is currently being traded at a Forward P/E ratio of 13.08. This expresses no noticeable deviation compared to the average Forward P/E of 13.08 of its industry.

Also, we should mention that PSX has a PEG ratio of 2.18. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Oil and Gas - Refining and Marketing industry stood at 1.71 at the close of the market yesterday.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 198, this industry ranks in the bottom 22% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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