Phillips 66 Stock Shows Mixed Signals as Analysts Boost Earnings Outlook

fork_in_the_road · 2026-01-12T18:43:27+00:00

Phillips 66 shares fell 1.43% despite broader market gains. Anticipated upcoming earnings suggest a significant EPS increase but declining revenue. The company's favorable PEG ratio indicates potential for investment, and recent analyst confidence has led to a "Strong Buy" rating, reflecting positive trends in the refining sector.

fork_in_the_road

2026-01-12 18:43:27

Abstract generation in progress

Phillips 66 (PSX) shares declined 1.43% to close at $142.16 in the recent trading session, a performance that contrasts with broader market strength where the S&P 500 rose 0.65%, the Dow advanced 0.48%, and the tech-focused Nasdaq climbed 0.82%. Over the past month, the energy company’s stock has gained 0.55%, underperforming both its sector peers in Oils-Energy which posted 0.68% gains and the wider market’s 1.15% appreciation.

Upcoming Earnings and Revised Guidance Point to Volatility

The oil refiner is scheduled to report its financial results on February 4, 2026, with market participants closely monitoring the outcome. Analysts now project an earnings per share (EPS) of $2.24 for the period, representing a significant 1593.33% increase year-over-year. However, revenue expectations tell a different story—consensus forecasts estimate $30.09 billion, down 11.46% from the same quarter last year. This divergence between earnings growth and revenue decline reflects shifts in operational efficiency and margin dynamics within the refining sector.

For the full fiscal year, the Zacks consensus outlook calls for $6.19 in earnings per share and $130.32 billion in total revenue. These projections indicate an EPS growth of 0.65% while revenue remains flat compared to the prior year.

What the Phillips 66 PEG Ratio Reveals About Valuation

The company’s valuation metrics present an intriguing picture for investors evaluating entry points. PSX trades at a Forward P/E ratio of 11.79, representing a discount to the Oil and Gas - Refining and Marketing industry average of 12. More notably, the PEG ratio—a metric that blends price-to-earnings with projected growth rates—stands at 0.38 for Phillips 66. This compares favorably to the sector average PEG of 1.1, suggesting the stock may offer compelling risk-reward dynamics relative to earnings growth expectations.

Analyst Confidence Reflected in Recent Estimate Revisions

Over the past 30 days, consensus EPS projections have moved 0.73% higher, signaling growing analyst confidence in the company’s near-term prospects. Such positive revisions typically correlate with improved operational trends and have historically influenced short-term stock performance. These evolving estimates earned Phillips 66 a Zacks Rank #1 (Strong Buy) rating, reflecting the conviction of professional analysts tracking the energy sector.

Industry Positioning Within the Broader Energy Landscape

The Oil and Gas - Refining and Marketing industry, of which Phillips 66 is a constituent, currently holds a Zacks Industry Rank of 100, positioning it within the top 41% of all 250+ industries. This ranking underscores the relative attractiveness of refining stocks in the current market environment, as research indicates top-tier industries outperform their lower-ranked counterparts by a factor of 2 to 1.

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