Phillips 66 (PSX) closed the most recent trading day at $130.78, moving -1.31% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. On the other hand, the Dow registered a loss of 0.59%, and the technology-centric Nasdaq increased by 0.45%.
Shares of the oil refiner witnessed a gain of 7.98% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.82%, and the S&P 500's gain of 3.44%.
The upcoming earnings release of Phillips 66 will be of great interest to investors. The company is expected to report EPS of $2.18, up 6.86% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $30.13 billion, indicating a 16.69% downward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.87 per share and revenue of $129.1 billion. These totals would mark changes of -20.81% and -11.27%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 3.74% higher. At present, Phillips 66 boasts a Zacks Rank of #3 (Hold).
Investors should also note Phillips 66's current valuation metrics, including its Forward P/E ratio of 27.2. This indicates a premium in contrast to its industry's Forward P/E of 17.78.
Meanwhile, PSX's PEG ratio is currently 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas – Refining and Marketing industry held an average PEG ratio of 1.51.
The Oil and Gas – Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons of all 250+ industries.
