The most recent trading session was closed for Phillips 66 (PSX) at $172.71, representing a +1.9% increase from the previous trading day’s closing price. This move outpaced the S&P 500’s daily gain of 0.11%. On the other hand, the Dow Jones Industrial Average fell 0.11%, and the Nasdaq index, which has a large proportion of tech stocks, rose 0.23%.
The oil refiner’s stock rose 16.01% last month, leading the Oil & Energy sector’s 8.5% gain and the S&P 500’s 1.5% gain.
Market participants will be keeping an eye on Phillips 66’s upcoming financial results. The company plans to announce its financial results on April 26, 2024. The company’s future EPS is expected to be $2.63, which would represent a -37.53% decline compared to the same period last year. At the same time, our latest consensus estimate is projecting sales of $31.68 billion, reflecting a year-over-year decline of 9.73%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.85 per share and revenue of $133.87 billion, which would represent changes of -18.72% and -10.69%, respectively, from the prior year.
Investors should also note any recent adjustments to analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research reveals that these estimate changes are directly correlated to near-term stock price performance. To benefit from this, we have created the Zacks Rank, a quantitative model that includes these estimate changes and presents an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has an impressive, outside-audited track record of outperforming expectations, with #1 stocks generating an average annual return of +25%. It has come true. Over the past 30 days, his Zacks Consensus EPS estimate has moved 1.62% lower. Phillips 66 currently carries a Zacks Rank #3 (Hold).
Taking a closer look at valuation, Phillips 66 currently has a Forward P/E ratio of 13.19. Its industry has an average Forward P/E of 13.28, so one might conclude that Phillips 66 is trading at a relatively cheap price.
Meanwhile, PSX’s PEG ratio is currently 2.2. 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. As of yesterday’s close, the average PEG ratio for the PSX industry was 2.01.
The Oil and Gas – Refining and Marketing industry is part of the Petroleum – Energy sector. This industry currently has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by calculating the average Zacks Rank of the 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.
You can find more information on all of these metrics, and more, on Zacks.com.
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