Phillips 66 (PSX) Hit a 52 Week High, Can the Run Continue?

Shares of Phillips 66 (PSX) have been strong performers lately, with the stock up 15.5% over the past month. The stock hit a new 52-week high of $261 in the previous session. Phillips 66 has gained 100.8% since the start of the year compared to the 34.3% gain for the Zacks Oils-Energy sector and the 126.8% return for the Zacks Oil and Gas - Refining and Marketing industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 5, 2026, Phillips 66 reported EPS of $9.41 versus consensus estimate of $7.68.

For the current fiscal year, Phillips 66 is expected to post earnings of $24.07 per share on $156.28 in revenues. This represents a 273.76% change in EPS on a 14.44% change in revenues. For the next fiscal year, the company is expected to earn $22.12 per share on $146.92 in revenues. This represents a year-over-year change of -8.08% and -5.99%, respectively.

Valuation Metrics

Though Phillips 66 has recently hit a 52-week high, what is next for Phillips 66? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Phillips 66 has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 10.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.3X. On a trailing cash flow basis, the stock currently trades at 17.6X versus its peer group's average of 11.4X. Additionally, the stock has a PEG ratio of 0.19. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Phillips 66 currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Phillips 66 passes the test. Thus, it seems as though Phillips 66 shares could have potential in the weeks and months to come.

How Does PSX Stack Up to the Competition?

Shares of PSX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PBF Energy Inc. (PBF). PBF has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.

Earnings were strong last quarter. PBF Energy Inc. beat our consensus estimate by 53.58%, and for the current fiscal year, PBF is expected to post earnings of $15.74 per share on revenue of $36.6 billion.

Shares of PBF Energy Inc. have gained 10.7% over the past month, and currently trade at a forward P/E of 4.88X and a P/CF of 47.7X.

The Oil and Gas - Refining and Marketing industry is in the top 4% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PSX and PBF, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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