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Here's Why Phillips 66 (PSX) Gained But Lagged the Market Today

Phillips 66 (PSX) closed the most recent trading day at $165.41, moving +0.15% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.74%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 1.68%.

Prior to today's trading, shares of the oil refiner had gained 6.92% over the past month. This has lagged the Oils-Energy sector's gain of 8.96% and outpaced 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's earnings report is expected on April 26, 2024. The company is expected to report EPS of $2.44, down 42.04% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $31.68 billion, showing a 9.72% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $13.30 per share and a revenue of $133.89 billion, demonstrating changes of -15.88% and -10.67%, respectively, from the preceding year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Phillips 66. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has shifted 1.61% upward. Currently, Phillips 66 is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Phillips 66 is currently being traded at a Forward P/E ratio of 12.42. For comparison, its industry has an average Forward P/E of 12.32, which means Phillips 66 is trading at a premium to the group.

Also, we should mention that PSX has a PEG ratio of 2.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 1.9.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Phillips 66 (PSX) : Free Stock Analysis Report

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