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Phillips 66 (PSX) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Phillips 66 (PSX) closed at $84.20, marking a -0.23% move from the previous day. This move lagged the S&P 500's daily gain of 3.06%. Elsewhere, the Dow gained 2.68%, while the tech-heavy Nasdaq lost 0.04%.

Coming into today, shares of the oil refiner had lost 14.48% in the past month. In that same time, the Oils-Energy sector lost 12.66%, while the S&P 500 lost 4.31%.

Phillips 66 will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2022. In that report, analysts expect Phillips 66 to post earnings of $4.05 per share. This would mark year-over-year growth of 447.3%. Our most recent consensus estimate is calling for quarterly revenue of $33.62 billion, up 20.56% from the year-ago period.

PSX's full-year Zacks Consensus Estimates are calling for earnings of $12.19 per share and revenue of $135.95 billion. These results would represent year-over-year changes of +113.86% and +18.37%, respectively.

Investors might also notice recent changes to analyst estimates for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 29.1% higher. Phillips 66 currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Phillips 66 currently has a Forward P/E ratio of 6.92. For comparison, its industry has an average Forward P/E of 8.55, which means Phillips 66 is trading at a discount to the group.

Also, we should mention that PSX has a PEG ratio of 0.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.6 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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