Phillips 66 (PSX) closed the most recent trading day at $112.23, moving -0.22% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.53%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.83%.
The oil refiner's shares have seen an increase of 6.57% over the last month, surpassing the Oils-Energy sector's gain of 2.48% and the S&P 500's gain of 5.17%.
Market participants will be closely following the financial results of Phillips 66 in its upcoming release. On that day, Phillips 66 is projected to report earnings of $1.81 per share, which would represent a year-over-year decline of 21.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.54 billion, down 21.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.37 per share and revenue of $122.71 billion, which would represent changes of -28.94% and -15.66%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Phillips 66. Such recent modifications usually signify the changing landscape 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.74% decrease. Phillips 66 currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Phillips 66 is currently trading at a Forward P/E ratio of 25.74. Its industry sports an average Forward P/E of 16.47, so one might conclude that Phillips 66 is trading at a premium comparatively.
We can additionally observe that PSX currently boasts a PEG ratio of 1.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Oil and Gas - Refining and Marketing industry stood at 1.47 at the close of the market yesterday.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 155, finds itself in the bottom 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
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Phillips 66 (PSX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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