Here's Why Phillips 66 (PSX) Gained But Lagged the Market Today
The most recent trading session ended with Phillips 66 (PSX) standing at $125.72, reflecting a +0.58% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.75%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 1%.
The oil refiner's stock has dropped by 9.22% in the past month, falling short of the Oils-Energy sector's loss of 4.12% and the S&P 500's gain of 4.03%.
The investment community will be paying close attention to the earnings performance of Phillips 66 in its upcoming release. The company is expected to report EPS of $2.54, down 45.14% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $32.28 billion, indicating a 19.94% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.25 per share and a revenue of $139.35 billion, representing changes of -41.49% and -7.03%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.98% lower. Phillips 66 is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Phillips 66 is presently being traded at a Forward P/E ratio of 13.51. This indicates a premium in contrast to its industry's Forward P/E of 13.45.
We can also see that PSX currently has a PEG ratio of 4.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Refining and Marketing industry had an average PEG ratio of 2.7.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Phillips 66 (PSX) : Free Stock Analysis Report