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Phillips 66 (PSX) Outperforms Broader Market: What You Need to Know

The latest trading session saw Phillips 66 (PSX) ending at $137.67, denoting a +1.22% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.23%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.34%.

Prior to today's trading, shares of the oil refiner had lost 6.98% over the past month. This has lagged the Oils-Energy sector's loss of 4.97% and the S&P 500's gain of 3.96% in that time.

The investment community will be closely monitoring the performance of Phillips 66 in its forthcoming earnings report. The company is scheduled to release its earnings on July 30, 2024. The company's earnings per share (EPS) are projected to be $3.40, reflecting a 12.14% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $32.03 billion, indicating a 10.37% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.16 per share and a revenue of $133.08 billion, signifying shifts of -23.09% and -11.21%, respectively, from the last year.

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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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.8% lower. Phillips 66 is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Phillips 66 is currently trading at a Forward P/E ratio of 11.19. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 11.19.

Also, we should mention that PSX has a PEG ratio of 1.86. 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 industry currently had an average PEG ratio of 1.74 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 37% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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Phillips 66 (PSX) : Free Stock Analysis Report

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Zacks Investment Research