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Phillips 66 (PSX) Stock Drops Despite Market Gains: Important Facts to Note

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The latest trading session saw Phillips 66 (PSX - Free Report) ending at $132.60, denoting a -0.56% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.63%.

Heading into today, shares of the oil refiner had gained 0.6% over the past month, outpacing the Oils-Energy sector's loss of 7.82% and lagging the S&P 500's gain of 3.76% in that time.

The upcoming earnings release of Phillips 66 will be of great interest to investors. The company's earnings report is expected on October 29, 2024. The company is forecasted to report an EPS of $1.71, showcasing a 63.07% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $32.03 billion, indicating a 20.56% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.71 per share and revenue of $138.9 billion, which would represent changes of -51.23% and -7.33%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Phillips 66. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 8.47% downward. Currently, Phillips 66 is carrying a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Phillips 66 is presently trading at a Forward P/E ratio of 17.3. This signifies a premium in comparison to the average Forward P/E of 16.83 for its industry.

Investors should also note that PSX has a PEG ratio of 5.77 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 2.81.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 238, which puts it in the bottom 6% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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