Phillips 66 (PSX) Suffers a Larger Drop Than the General Market: Key Insights

Phillips 66 (PSX) closed at $133.21 in the latest trading session, marking a -0.48% move from the prior day. This change lagged the S&P 500's daily loss of 0.15%. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq increased by 0.09%.

Shares of the oil refiner witnessed a gain of 5.89% over the previous month, beating the performance of the Oils-Energy sector with its gain of 2.64% and the S&P 500's gain of 3.5%.

Investors will be eagerly watching for the performance of Phillips 66 in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 31, 2024. The company is expected to report EPS of $2.65, down 33.75% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $34.76 billion, indicating a 15.02% downward movement from the same quarter last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 3.21% fall in the Zacks Consensus EPS estimate. As of now, Phillips 66 holds a Zacks Rank of #3 (Hold).

Investors should also note Phillips 66's current valuation metrics, including its Forward P/E ratio of 10.07. This indicates a discount in contrast to its industry's Forward P/E of 10.2.

Meanwhile, PSX's PEG ratio is currently 1.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 1.56.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons 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.

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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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