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Phillips 66 (PSX) Dips More Than Broader Markets: What You Should Know

Phillips 66 (PSX) closed at $87.24 in the latest trading session, marking a -1.6% move from the prior day. This move lagged the S&P 500's daily loss of 0.97%. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, added 0.23%.

Heading into today, shares of the oil refiner had gained 22.9% over the past month, outpacing the Oils-Energy sector's gain of 14.52% and the S&P 500's loss of 0.78% in that time.

Investors will be hoping for strength from Phillips 66 as it approaches its next earnings release, which is expected to be January 28, 2022. In that report, analysts expect Phillips 66 to post earnings of $1.91 per share. This would mark year-over-year growth of 264.66%. Meanwhile, our latest consensus estimate is calling for revenue of $22.49 billion, up 34.11% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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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. Within the past 30 days, our consensus EPS projection has moved 5.44% higher. Phillips 66 is currently a Zacks Rank #2 (Buy).

Digging into valuation, Phillips 66 currently has a Forward P/E ratio of 11.94. For comparison, its industry has an average Forward P/E of 17.18, which means Phillips 66 is trading at a discount to the group.

Investors should also note that PSX has a PEG ratio of 0.62 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.63 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 91, putting it in the top 36% 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.

To follow PSX in the coming trading sessions, be sure to utilize Zacks.com.


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