Phillips 66 (PSX) closed the most recent trading day at $120.80, moving +1.16% from the previous trading session. This change outpaced the S&P 500's 0.02% gain on the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.22%.
Prior to today's trading, shares of the oil refiner had gained 5.97% over the past month. This has outpaced the Oils-Energy sector's gain of 3.17% and the S&P 500's loss of 2.86% in that time.
Wall Street will be looking for positivity from Phillips 66 as it approaches its next earnings report date. This is expected to be October 27, 2023. On that day, Phillips 66 is projected to report earnings of $4.72 per share, which would represent a year-over-year decline of 26.93%. Our most recent consensus estimate is calling for quarterly revenue of $34.17 billion, down 29.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.98 per share and revenue of $138.36 billion, which would represent changes of -14.95% and -21.26%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Phillips 66. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.54% higher. Phillips 66 is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 7.47 right now. For comparison, its industry has an average Forward P/E of 6.98, which means Phillips 66 is trading at a premium to the group.
Also, we should mention that PSX has a PEG ratio of 0.4. 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. PSX's industry had an average PEG ratio of 1.01 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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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