Phillips 66 (PSX) Stock Drops Despite Market Gains: Important Facts to Note

Phillips 66 (PSX) closed the most recent trading day at $124.62, moving -0.3% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 1.37%.

Shares of the oil refiner witnessed a gain of 11.8% over the previous month, beating the performance of the Oils-Energy sector with its loss of 4.19% and the S&P 500's gain of 4.39%.

Investors will be eagerly watching for the performance of Phillips 66 in its upcoming earnings disclosure. In that report, analysts expect Phillips 66 to post earnings of $2.75 per share. This would mark a year-over-year decline of 31.25%. At the same time, our most recent consensus estimate is projecting a revenue of $34.85 billion, reflecting a 14.81% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.45 per share and revenue of $145.49 billion. These totals would mark changes of -17.78% and -17.19%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Phillips 66. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.82% increase. Currently, Phillips 66 is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Phillips 66 currently has a Forward P/E ratio of 8.09. For comparison, its industry has an average Forward P/E of 6.57, which means Phillips 66 is trading at a premium to the group.

It is also worth noting that PSX currently has a PEG ratio of 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. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.82 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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