Why Phillips 66 (PSX) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, aiding investors in timing their purchases [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive rating for stocks [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8][9] Stock to Watch: Phillips 66 - Phillips 66 is a diversified energy company with a refining capacity of 2.2 million barrels per day, currently rated 3 (Hold) with a VGM Score of B [11] - The company has a Value Style Score of B, supported by a forward P/E ratio of 21.98, indicating attractive valuation metrics [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.96 to $6.23 per share, with an average earnings surprise of +18.3% [12]