Phillips 66 (PSX) closed at $120.07 in the latest trading session, marking a -0.12% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Coming into today, shares of the oil refiner had gained 6.45% in the past month. In that same time, the Oils-Energy sector gained 4.35%, while the S&P 500 gained 1.85%.
Investors will be hoping for strength from Phillips 66 as it approaches its next earnings release, which is expected to be October 27, 2023. In that report, analysts expect Phillips 66 to post earnings of $4.61 per share. This would mark a year-over-year decline of 28.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.13 billion, down 30.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.82 per share and revenue of $138.28 billion. These totals would mark changes of -15.81% and -21.3%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Phillips 66. These recent revisions tend to reflect the evolving nature of short-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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.08% higher. Phillips 66 is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Phillips 66 currently has a Forward P/E ratio of 7.6. Its industry sports an average Forward P/E of 7.09, so we one might conclude that Phillips 66 is trading at a premium comparatively.
Investors should also note that PSX has a PEG ratio of 0.4 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 1.03 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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