Phillips 66 (PSX) Outperforms Broader Market: What You Need to Know
The most recent trading session ended with Phillips 66 (PSX) standing at $127.16, reflecting a +1.55% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 1.37%. Elsewhere, the Dow saw an upswing of 1.4%, while the tech-heavy Nasdaq appreciated by 1.38%.
Heading into today, shares of the oil refiner had gained 8.87% over the past month, outpacing the Oils-Energy sector's loss of 2.08% and the S&P 500's gain of 5.37% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Phillips 66 in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.77, signifying a 30.75% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $34.85 billion, down 14.81% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.47 per share and revenue of $145.49 billion. These totals would mark changes of -17.67% and -17.19%, respectively, from last year.
Any recent changes to analyst estimates for Phillips 66 should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.89% higher within the past month. Phillips 66 is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Phillips 66 is currently trading at a Forward P/E ratio of 8.09. Its industry sports an average Forward P/E of 6.75, so one might conclude that Phillips 66 is trading at a premium comparatively.
Meanwhile, PSX's PEG ratio is currently 0.43. 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. The Oil and Gas - Refining and Marketing industry had an average PEG ratio of 0.95 as trading concluded 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 68, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Phillips 66 (PSX) : Free Stock Analysis Report
