Yahoo Finance Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Phillips 66 (PSX)
Based in Houston, TX, Phillips 66's operations incorporate refining, midstream, marketing and specialties, and chemicals. The company, in its current form, came into existence following the 2012 spin-off of ConocoPhillips' downstream business into a separate, independent and publicly-traded entity. The company’s operations include processing, transportation, storing and marketing fuels and products all over the world. Phillips 66 Partners, the company's master limited partnership, is an important asset in the portfolio. The company operates through the four business segments, namely, Midstream, Chemicals, Refining, and Marketing and Specialties.
PSX sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Oil and Gas - Refining and Marketing industry's P/E of 5.4X, shares of Phillips 66 are trading at a forward P/E of 5.4X. PSX also has a PEG Ratio of 0.3, a Price/Cash Flow ratio of 11.7X, and a Price/Sales ratio of 0.3X.
A company's earnings performance is important for value investors as well. For fiscal 2022, four analysts revised their earnings estimate higher in the last 60 days for PSX, while the Zacks Consensus Estimate has increased $4.33 to $20.62 per share. PSX also holds an average earnings surprise of 28.1%.
PSX should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Phillips 66 (PSX) : Free Stock Analysis Report
