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Phillips 66 (PSX) Suffers a Larger Drop Than the General Market: Key Insights

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The latest trading session saw Phillips 66 (PSX - Free Report) ending at $113.54, denoting a -1.43% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 1.26%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 1.54%.

The the stock of oil refiner has fallen by 3.96% in the past month, lagging the Oils-Energy sector's gain of 0.54% and the S&P 500's loss of 3.67%.

Investors will be eagerly watching for the performance of Phillips 66 in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 27, 2023. The company's upcoming EPS is projected at $4.97, signifying a 23.07% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $34.38 billion, indicating a 29.49% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $15.87 per share and a revenue of $138.87 billion, demonstrating changes of -15.54% and -20.96%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, there's been a 0.26% rise in the Zacks Consensus EPS estimate. Right now, Phillips 66 possesses a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 7.26 right now. This denotes a premium relative to the industry's average Forward P/E of 7.03.

It is also worth noting that PSX currently has a PEG ratio of 0.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Oil and Gas - Refining and Marketing industry stood at 1 at the close of the market yesterday.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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