The most recent trading session ended with Phillips 66 (PSX) standing at $120.95, reflecting a +1.9% shift from the previous trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.27%.
Shares of the oil refiner have depreciated by 5.47% over the course of the past month, underperforming the Oils-Energy sector's gain of 4.61%, and the S&P 500's gain of 6.9%.
Analysts and investors alike will be keeping a close eye on the performance of Phillips 66 in its upcoming earnings disclosure. The company is expected to report EPS of $1.78, down 22.94% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $30.58 billion, reflecting a 21.42% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.33 per share and revenue of $122.77 billion. These totals would mark changes of -29.59% and -15.62%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Phillips 66. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 3.37% fall in the Zacks Consensus EPS estimate. Phillips 66 presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Phillips 66 is presently being traded at a Forward P/E ratio of 27.39. Its industry sports an average Forward P/E of 16.7, so one might conclude that Phillips 66 is trading at a premium comparatively.
One should further note that PSX currently holds a PEG ratio of 1.83. 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 the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 1.55.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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