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Phillips 66 (PSX) Gains As Market Dips: What You Should Know

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Phillips 66 (PSX) closed at $82.75 in the latest trading session, marking a +1.36% move from the prior day. This move outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the oil refiner had lost 9.8% in the past month. In that same time, the Oils-Energy sector lost 13.18%, while the S&P 500 gained 2.02%.

Wall Street will be looking for positivity from Phillips 66 as it approaches its next earnings report date. This is expected to be July 29, 2022. The company is expected to report EPS of $5.52, up 645.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.16 billion, up 22.51% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.49 per share and revenue of $136.58 billion. These totals would mark changes of +154.21% and +18.91%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Phillips 66. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection has moved 18.85% higher. Phillips 66 is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Phillips 66 is currently trading at a Forward P/E ratio of 5.64. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 5.64.

Meanwhile, PSX's PEG ratio is currently 0.49. 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. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.49 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PSX in the coming trading sessions, be sure to utilize Zacks.com.


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