Phillips 66 (PSX) Registers a Bigger Fall Than the Market: Important Facts to Note

Company Performance - Phillips 66 (PSX) closed at $130.78, down 1.31% from the previous trading session, underperforming the S&P 500 which lost 0.05% [1] - The stock gained 7.98% over the previous month, outperforming the Oils-Energy sector's gain of 3.82% and the S&P 500's gain of 3.44% [1] Upcoming Earnings - The upcoming earnings release is expected to show EPS of $2.18, a 6.86% increase from the prior-year quarter, with revenue anticipated at $30.13 billion, reflecting a 16.69% decrease from the same quarter last year [2] - For the full year, analysts expect earnings of $4.87 per share and revenue of $129.1 billion, indicating declines of 20.81% and 11.27% respectively from last year [3] Analyst Estimates and Revisions - Recent modifications to analyst estimates for Phillips 66 are crucial as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which incorporates estimate changes, has shown that stocks ranked 1 (Strong Buy) have yielded an average annual return of +25% since 1988 [5][6] Valuation Metrics - Phillips 66 has a Forward P/E ratio of 27.2, which is a premium compared to its industry's Forward P/E of 17.78, and a PEG ratio of 2.06, higher than the industry average PEG ratio of 1.51 [7] Industry Context - The Oil and Gas - Refining and Marketing industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [8]