IIn the last trading session, Phillips 66 (PSX) closed at $108.27, marking a -1.8% move from the previous day. That move was narrower than the S&P 500’s 2.38% daily loss. At the same time, the Dow Jones lost 1.94% and the tech-heavy Nasdaq lost 0.64%.
Going into today, shares of the oil refiner had gained 20.89% over the past month, outpacing the Oil & Energy sector’s gain of 10.37% and the Oil & Energy sector’s loss of 0.07%. S&P 500 during this period.
Phillips 66 will be looking to show strength heading into its next earnings release. The company is expected to post EPS of $4.05, up 447.3% from the prior year quarter. Meanwhile, our latest consensus estimate calls for revenue of $33.62 billion, up 20.56% from the prior year quarter.
Zacks consensus estimates for the full year for PSX call for earnings of $12.19 per share and revenue of $135.95 billion. These results would represent year-over-year variations of +113.86% and +18.37%, respectively.
Investors may also notice recent changes in analyst estimates for Phillips 66. These recent revisions tend to reflect the evolving nature of short-term trading trends. Therefore, 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 to short-term stock prices. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 Over the past month, the Zacks Consensus EPS estimate rose 32.56%. Phillips 66 currently sports a Zacks rank of #3 (Hold).
As for its valuation, Phillips 66 holds a Forward P/E ratio of 9.04. For comparison, his industry has an average Forward P/E of 10.3, which means Phillips 66 is trading at a discount to the group.
Meanwhile, PSX’s PEG ratio is currently 0.78. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The Oil & Gas Industry – Refining & Marketing currently had an average PEG ratio of 0.78 at yesterday’s close.
The Oil and Gas – Refining and Marketing industry is part of the Oil & Energy sector. This group has a Zacks industry ranking of 5, which places it in the top 2% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
To follow PSX in future trading sessions, be sure to use Zacks.com.
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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.