Phillips 66 (PSX) closed the most recent trading day at $174.09, moving +2.71% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.52%. Elsewhere, the Dow saw a downswing of 1.56%, while the tech-heavy Nasdaq depreciated by 1.78%.
Heading into today, shares of the oil refiner had gained 4.95% over the past month, lagging the Oils-Energy sector's gain of 5.1% and outpacing the S&P 500's loss of 2.25%.
Market participants will be closely following the financial results of Phillips 66 in its upcoming release. 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, our latest consensus estimate is calling for revenue of $28.73 billion, down 9.44% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.56 per share and a revenue of $123.45 billion, representing changes of +79.5% and -9.6%, respectively, from the prior year.
Any recent changes to analyst estimates for Phillips 66 should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 2.49% upward. Currently, Phillips 66 is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Phillips 66 is currently being traded at a Forward P/E ratio of 14.66. This valuation marks a discount compared to its industry average Forward P/E of 15.77.
Investors should also note that PSX has a PEG ratio of 0.59 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PSX's industry had an average PEG ratio of 2.7 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
