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Phillips 66 (PSX) Ascends While Market Falls: Some Facts to Note

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In the latest market close, Phillips 66 (PSX - Free Report) reached $132.99, with a +1.17% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.93% for the day. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq lost 1.53%.

Prior to today's trading, shares of the oil refiner had lost 6.31% over the past month. This has lagged the Oils-Energy sector's loss of 2.51% and the S&P 500's gain of 2.17% in that time.

The upcoming earnings release of Phillips 66 will be of great interest to investors. The company's earnings report is expected on October 29, 2024. The company is forecasted to report an EPS of $2.18, showcasing a 52.92% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.04 billion, down 20.55% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.27 per share and revenue of $138.92 billion, which would represent changes of -47.69% and -7.32%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.62% lower. At present, Phillips 66 boasts a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Phillips 66 is holding a Forward P/E ratio of 15.9. This signifies a premium in comparison to the average Forward P/E of 15.35 for its industry.

We can also see that PSX currently has a PEG ratio of 5.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 3.29.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% 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.

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


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