In the latest trading session, Phillips 66 (PSX) closed at $180.24, marking a +2.48% move from the previous day. This move outpaced the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.42%.
Shares of the oil refiner witnessed a loss of 0.18% over the previous month, beating the performance of the Oils-Energy sector with its loss of 4.92%, and underperforming the S&P 500's gain of 6.32%.
The investment community will be paying close attention to the earnings performance of Phillips 66 in its upcoming release. The company is forecasted to report an EPS of $5.83, showcasing a 144.96% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $35.36 billion, reflecting a 5.49% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.64 per share and a revenue of $140.94 billion, indicating changes of +173.91% and +3.21%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.74% upward. At present, Phillips 66 boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Phillips 66 is presently trading at a Forward P/E ratio of 9.97. For comparison, its industry has an average Forward P/E of 9.1, which means Phillips 66 is trading at a premium to the group.
One should further note that PSX currently holds a PEG ratio of 0.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 0.36.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).