Phillips 66 (PSX) closed the latest trading day at $125.33, indicating a -0.23% change from the previous session’s end. The stock fell short of the S&P 500, which registered a gain of 0.82% for the day. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw an increase of 1.77%.
Heading into today, shares of the oil refiner had lost 1.63% over the past month, outpacing the Oils-Energy sector’s loss of 2.1% and lagging the S&P 500’s gain of 0.8% in that time.
The upcoming earnings release of Phillips 66 will be of great interest to investors. The company is expected to report EPS of $1, down 67.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.34 billion, down 16.52% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.59 per share and revenue of $143.85 billion, indicating changes of -51.99% and -4.03%, respectively, compared to the previous 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, the Zacks Consensus EPS estimate has moved 0.51% lower. Phillips 66 is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 16.55 right now. This expresses a premium compared to the average Forward P/E of 15.81 of its industry.
One should further note that PSX currently holds a PEG ratio of 4.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As of the close of trade yesterday, the Oil and Gas – Refining and Marketing industry held an average PEG ratio of 2.48.
The Oil and Gas – Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 204, placing it within the bottom 19% of over 250 industries.
