Phillips 66 (PSX) closed at $131.78 in the latest trading session, marking a -6.88% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.24%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.23%.
The oil refiner's shares have seen an increase of 3.56% over the last month, surpassing the Oils-Energy sector's loss of 1.72% and the S&P 500's gain of 1.31%.
Market participants will be closely following the financial results of Phillips 66 in its upcoming release. The company is predicted to post an EPS of $2.3, indicating a 1633.33% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $30.11 billion, reflecting a 11.41% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.23 per share and a revenue of $130.33 billion, demonstrating changes of +1.3% and -10.42%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 shifted 8.67% upward. Phillips 66 is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 22.7 right now. For comparison, its industry has an average Forward P/E of 14.05, which means Phillips 66 is trading at a premium to the group.
One should further note that PSX currently holds a PEG ratio of 0.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 1.19.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Phillips 66 (PSX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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