Phillips 66 (PSX) Gains But Lags Market: What You Should Know

Phillips 66 (PSX) closed at $86.30 in the latest trading session, marking a +0.17% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the oil refiner had gained 21.8% in the past month. In that same time, the Oils-Energy sector gained 7.1%, while the S&P 500 gained 0.12%.

Investors will be hoping for strength from Phillips 66 as it approaches its next earnings release, which is expected to be January 28, 2022. On that day, Phillips 66 is projected to report earnings of $1.76 per share, which would represent year-over-year growth of 251.72%. Our most recent consensus estimate is calling for quarterly revenue of $22.49 billion, up 34.11% from the year-ago period.

Any recent changes to analyst estimates for Phillips 66 should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.48% higher. Phillips 66 is currently a Zacks Rank #3 (Hold).

Digging into valuation, Phillips 66 currently has a Forward P/E ratio of 11.9. Its industry sports an average Forward P/E of 18.37, so we one might conclude that Phillips 66 is trading at a discount comparatively.

It is also worth noting that PSX currently has a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.63 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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.

To follow PSX in the coming trading sessions, be sure to utilize Zacks.com.

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