Phillips 66 (PSX) Outpaces Stock Market Gains: What You Should Know
Phillips 66 (PSX) closed the most recent trading day at $89.56, moving +1.74% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.06%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.18%.
Heading into today, shares of the oil refiner had lost 2.19% over the past month, lagging the Oils-Energy sector's gain of 4.37% and the S&P 500's loss of 1.14% in that time.
Wall Street will be looking for positivity from Phillips 66 as it approaches its next earnings report date. On that day, Phillips 66 is projected to report earnings of $4.73 per share, which would represent year-over-year growth of 48.74%. Our most recent consensus estimate is calling for quarterly revenue of $35.98 billion, up 14.34% from the year-ago period.
PSX's full-year Zacks Consensus Estimates are calling for earnings of $16.22 per share and revenue of $155.24 billion. These results would represent year-over-year changes of +184.56% and +35.16%, respectively.
Investors might also notice recent changes to analyst estimates for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.4% higher. Phillips 66 currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 5.43 right now. For comparison, its industry has an average Forward P/E of 5.7, which means Phillips 66 is trading at a discount to the group.
It is also worth noting that PSX currently has a PEG ratio of 0.44. 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. PSX's industry had an average PEG ratio of 0.44 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 3, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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