Phillips 66 (PSX) Outpaces Stock Market Gains: What You Should Know
In the latest market close, Phillips 66 (PSX) reached $132.87, with a +1.99% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.08% for the day. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
The oil refiner's shares have seen an increase of 0.13% over the last month, not keeping up with the Oils-Energy sector's gain of 0.61% and the S&P 500's gain of 3.52%.
Market participants will be closely following the financial results of Phillips 66 in its upcoming release. The company plans to announce its earnings on January 31, 2024. On that day, Phillips 66 is projected to report earnings of $2.65 per share, which would represent a year-over-year decline of 33.75%. Meanwhile, the latest consensus estimate predicts the revenue to be $34.76 billion, indicating a 15.02% decrease compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Phillips 66. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.18% decrease. Phillips 66 is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 9.91 right now. This expresses a discount compared to the average Forward P/E of 10.26 of its industry.
We can additionally observe that PSX currently boasts a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. 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. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% 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 Report
