Phillips 66 (PSX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

In the latest trading session, Phillips 66 (PSX) closed at $175.47, marking a -1.61% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.51% for the day. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 2.01%.

Heading into today, shares of the oil refiner had gained 14.76% over the past month, outpacing the Oils-Energy sector's gain of 9.4% and the S&P 500's loss of 3.63%.

The investment community will be closely monitoring the performance of Phillips 66 in its forthcoming earnings report. The company is forecasted to report an EPS of $2.07, showcasing a 330% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.73 billion, down 9.44% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $11.56 per share and a revenue of $123.45 billion, demonstrating changes of +79.5% and -9.6%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Phillips 66. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.41% upward. At present, Phillips 66 boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 15.43 right now. This expresses a discount compared to the average Forward P/E of 15.65 of its industry.

We can additionally observe that PSX currently boasts a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 1.41 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 38% of over 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.

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

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This article originally published on Zacks Investment Research (zacks.com).

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