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Why Phillips 66 (PSX) Dipped More Than Broader Market Today

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In the latest trading session, Phillips 66 (PSX - Free Report) closed at $115.83, marking a -0.4% move from the previous day. This change lagged the S&P 500's 0.39% loss on the day. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq decreased by 0.32%.

Shares of the oil refiner witnessed a loss of 11.45% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 5.09% and the S&P 500's gain of 3.6%.

Analysts and investors alike will be keeping a close eye on the performance of Phillips 66 in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.95, signifying a 69.26% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $32.22 billion, indicating a 16.82% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.56 per share and a revenue of $143.73 billion, indicating changes of -52.18% and -4.11%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Phillips 66. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 0.93% lower. Phillips 66 is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Phillips 66 is currently exchanging hands at a Forward P/E ratio of 15.38. For comparison, its industry has an average Forward P/E of 13.97, which means Phillips 66 is trading at a premium to the group.

One should further note that PSX currently holds a PEG ratio of 3.85. 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 2.3 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 174, positioning it in the bottom 31% 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.

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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