Back to top

Image: Bigstock

Phillips 66 (PSX) Ascends But Remains Behind Market: Some Facts to Note

Read MoreHide Full Article

In the latest trading session, Phillips 66 (PSX - Free Report) closed at $110.48, marking a +0.1% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq increased by 0.98%.

Heading into today, shares of the oil refiner had lost 17.18% over the past month, lagging the Oils-Energy sector's loss of 9.2% and the S&P 500's gain of 0.34% in that time.

The investment community will be paying close attention to the earnings performance of Phillips 66 in its upcoming release. The company is forecasted to report an EPS of $0.93, showcasing a 69.9% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $32.22 billion, down 16.82% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $7.51 per share and a revenue of $143.73 billion, demonstrating changes of -52.5% and -4.11%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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. The Zacks Consensus EPS estimate has moved 0.69% lower within the past month. Currently, Phillips 66 is carrying a Zacks Rank of #3 (Hold).

Investors should also note Phillips 66's current valuation metrics, including its Forward P/E ratio of 14.69. For comparison, its industry has an average Forward P/E of 13.47, which means Phillips 66 is trading at a premium to the group.

It's also important to note that PSX currently trades at a PEG ratio of 3.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Oil and Gas - Refining and Marketing industry stood at 2.24 at the close of the market yesterday.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 32% of all 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Phillips 66 (PSX) - free report >>

Published in