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

In the latest trading session, Phillips 66 (PSX) closed at $82.27, marking a +1.23% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.19%.

Coming into today, shares of the oil refiner had lost 12.02% in the past month. In that same time, the Oils-Energy sector lost 4.09%, while the S&P 500 lost 10.24%.

Phillips 66 will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2022. On that day, Phillips 66 is projected to report earnings of $4.90 per share, which would represent year-over-year growth of 54.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.89 billion, up 14.05% from the year-ago period.

PSX's full-year Zacks Consensus Estimates are calling for earnings of $16.30 per share and revenue of $155.03 billion. These results would represent year-over-year changes of +185.96% and +34.99%, respectively.

Any recent changes to analyst estimates for Phillips 66 should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 3.28% higher. Phillips 66 is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Phillips 66 is currently trading at a Forward P/E ratio of 4.99. For comparison, its industry has an average Forward P/E of 5.34, which means Phillips 66 is trading at a discount to the group.

We can also see that PSX currently has a PEG ratio of 0.41. 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 0.44 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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