Discovering the 'Hidden Gold Mine' That Has Outperformed the Market for Three Decades
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 24 2025
0mins
Source: Benzinga
Corporate Spin-offs as Investment Opportunities: Corporate spin-offs have consistently outperformed the market over the past 30 years, with studies showing they deliver average excess returns of 3% on ex-dates and outperform the overall market by 10% in their first three years of independence.
Mechanics of Spin-offs: Investors often sell spin-off shares indiscriminately, creating opportunities for those who recognize the potential value in these newly independent companies, which can thrive without the constraints of their parent organizations.
Successful Spin-off Examples: Notable spin-offs like Yum Brands, Chipotle, and AbbVie have demonstrated significant returns, with Yum delivering a 1,600% return since its spin-off and Chipotle rising from $22 to $1,592 per share.
Current Trends and Future Potential: The spin-off market is evolving, with larger and more impactful separations occurring, driven by activist investors and a focus on unlocking value. Despite recent trends suggesting some spin-offs may be defensive moves, opportunities for outsized returns still exist for diligent investors.
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Analyst Views on PSX
Wall Street analysts forecast PSX stock price to fall
15 Analyst Rating
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 188.280
Low
110.00
Averages
132.40
High
162.00
Current: 188.280
Low
110.00
Averages
132.40
High
162.00
About PSX
Phillips 66 is a diversified and integrated downstream energy provider that manufactures, transports and markets products. The Company's Midstream segment provides crude oil and refined petroleum product transportation, terminating and processing services, as well as natural gas and natural gas liquids (NGL) transportation, storage, fractionation, gathering, processing and marketing services. Its Chemicals segment consists of its 50% equity investment in Chevron Phillips Chemical Company LLC, which manufactures and markets petrochemicals and plastics on a worldwide basis. Its Refining segment refines crude oil and other feedstocks into petroleum products, such as gasoline, distillates, including aviation fuels. Its Marketing and Specialties segment purchases for resale and markets refined products, mainly in the United States and Europe. Its Renewable Fuels segment processes renewable feedstocks into renewable products at the Rodeo Renewable Energy Complex and at its Humber Refinery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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