Phillips 66 PSX shares soared 11.1% in the last trading session to close at $103.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.8% loss over the past four weeks.
Investors are optimistic that an energy market downturn is unlikely, as the broader market has rebounded following President Donald Trump's decision to pause "reciprocal" tariff increases and apply a reduced 10% tariff rate for most countries over the next 90 days. Being a leading refiner, demand for Phillips 66’s end products is likely to increase, aiding the stock price.
This oil refiner is expected to post quarterly earnings of $1.03 per share in its upcoming report, which represents a year-over-year change of -45.8%. Revenues are expected to be $30.72 billion, down 15.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Phillips 66, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PSX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Phillips 66 is a member of the Zacks Oil and Gas - Refining and Marketing industry. One other stock in the same industry, Par Petroleum PARR, finished the last trading session 9% higher at $14.24. PARR has returned 2% over the past month.
Par Petroleum's consensus EPS estimate for the upcoming report has changed +657.1% over the past month to $0.41. Compared to the company's year-ago EPS, this represents a change of -40.6%. Par Petroleum currently boasts a Zacks Rank of #3 (Hold).
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Phillips 66 (PSX): Free Stock Analysis Report Par Pacific Holdings, Inc. (PARR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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