Do Wall Street Analysts Like Phillips 66 Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 22 2024
0mins
Should l Buy PSX?
Source: NASDAQ.COM
Company Overview and Performance: Phillips 66, a diversified energy company with a market cap of $54.3 billion, has underperformed the broader market over the past year, with its stock rallying only 11.9% compared to the S&P 500's 31.1% gains.
Earnings and Analyst Ratings: Despite surpassing earnings expectations with an adjusted EPS of $2.04, Phillips 66's refining segment faced challenges, leading to a projected 52.1% decline in EPS for the fiscal year; analysts maintain a "Moderate Buy" consensus rating on the stock.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PSX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 169.500
Low
110.00
Averages
132.40
High
162.00
Current: 169.500
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.
Surge in Gas Prices Impacts Gig Economy Workers
- Gas Price Surge: The average price of unleaded gasoline has jumped 22% over the past month to about $3.59 per gallon, marking the highest level since May 2024, which directly impacts gig economy workers reliant on their vehicles for income.
- Gig Economy Adaptation: Many gig workers, including Uber and DoorDash drivers, are adjusting their strategies to cope with high fuel prices, with some seeking additional income sources or reducing personal vehicle use to mitigate costs and ensure profitability.
- Call for Policy Changes: Gig workers are urging platform companies to implement additional gas surcharges to alleviate the burden of soaring fuel prices, similar to measures taken after Russia's invasion of Ukraine in 2022, highlighting the urgent need for policy support.
- Increased Economic Instability: As fuel prices continue to rise, the economic instability faced by gig workers intensifies, particularly in the current tight labor market where finding alternative employment opportunities is challenging, further exacerbating the vulnerability of this workforce.
See More
IEA Releases Emergency Oil Reserves Amid Supply Shock
- Emergency Oil Release: The IEA member countries are releasing 400 million barrels of oil in response to the Strait of Hormuz supply shock, with the U.S. contributing 172 million barrels, which may increase household expenses as oil prices rally again.
- Market Reaction: Stock futures are lower this morning due to rising oil prices, reflecting market concerns about the ongoing Iran conflict, and until there is evidence of resolution, the risk of elevated oil prices remains.
- Layoffs and Investment: Atlassian announced a 10% workforce reduction, equating to about 1,600 employees, with the CEO stating this will help self-fund further investments in AI and enterprise sales, highlighting challenges in the traditional software model.
- Private Fund Restrictions: Morgan Stanley and Cliffwater have restricted withdrawals on private credit funds, with Morgan Stanley fulfilling less than half of an 11% redemption request on an $8 billion fund, indicating liquidity issues in the private credit market.
See More
Airlines Adjust Fares Amid Soaring Fuel Prices
- Fuel Surcharge Increase: Cathay Pacific announced it would nearly double fuel surcharges starting March 18, reflecting the pressure on airlines from soaring fuel prices due to the U.S. and Israel's attacks on Iran, which may impact consumer travel choices.
- Flight Adjustment Risks: Air New Zealand stated it would suspend its financial outlook and make initial fare adjustments if fuel markets and operating conditions remain unstable, highlighting the vulnerability of airlines in a high fuel price environment, potentially affecting profitability.
- Demand and Pricing Power: Despite rising fuel prices, United Airlines CEO Scott Kirby noted that travel demand remains strong, and if this trend continues, airlines may gain more pricing power; however, this will depend on the duration of the conflict.
- Delayed Market Response: Analysts expect airlines to face the most acute financial impact in the next 30-90 days, as they booked yields for flights assuming lower fuel prices, making it difficult to adjust fares quickly, which could lead to earnings hits in the first quarter.
See More
IEA Announces Historic Release of Oil Reserves Amid Middle East Conflict
- Historic Reserve Release: The International Energy Agency's decision to release 400 million barrels of crude oil marks the largest coordinated drawdown since its inception in 1974, aimed at addressing global oil supply disruptions caused by the Middle East conflict, highlighting policymakers' serious concerns over soaring oil prices.
- U.S. Strategic Reserve Involvement: The U.S. will tap 172 million barrels from its Strategic Petroleum Reserve as part of the global coordinated effort; however, oil prices surged over 8%, indicating market skepticism regarding the effectiveness of these measures in quickly alleviating supply shocks.
- Strait of Hormuz Transport Disruption: Approximately 20 million barrels of crude oil and petroleum products transit the Strait of Hormuz daily, accounting for about 20% of global oil consumption, and the conflict has severely disrupted these flows, exacerbating market fears over oil prices.
- Future Price Expectations: Analysts predict that if the conflict lasts for months, oil prices could surge to $120 to $150 per barrel to curb demand, particularly in developing economies, indicating that the market may be underestimating the potential scale and duration of the crisis.
See More
Rising Oil Prices Impact Market, Cramer Analyzes Investment Themes
- Oil Price Surge Impact: The ongoing Iran war has driven WTI crude oil prices above $88 per barrel, marking a year-to-date increase of over 50%, which could pressure the stock market, as evidenced by the S&P 500's slight decline amid a 5% rise in oil prices.
- Strategic Petroleum Reserve Release: President Trump announced the release of the U.S. Strategic Petroleum Reserve to alleviate energy prices, while the International Energy Agency agreed to release 400 million barrels of oil to address global supply disruptions, although these measures are seen as temporary fixes.
- Strong Data Center Infrastructure: Cramer highlighted Oracle's robust earnings as validation of the AI-driven data center infrastructure theme, indicating that its buildout is progressing better than expected, potentially offering new opportunities for investors.
- Ongoing Memory Shortage: Commentary from Hewlett Packard Enterprise suggests that the shortage of memory used in AI and computing systems may persist longer than anticipated, providing potential investment opportunities for related companies.
See More
Trump Plans to Tap Strategic Petroleum Reserve Amid Iran War
- Energy Cost Mitigation: Trump announced plans to tap the Strategic Petroleum Reserve to lower energy costs, a move expected to alleviate pressures from global oil supply disruptions due to the Iran war, although it may impact reserve levels in the short term.
- Rising Gas Prices: Gasoline prices in the U.S. have surged to about $3.58 per gallon, a nearly 22% increase from last month's $2.94, which will directly affect consumer spending and economic recovery efforts.
- International Energy Agency Action: The International Energy Agency agreed to release 400 million barrels of oil to address supply disruptions, marking the largest stockpile release in over 50 years, highlighting the urgent need for stability in global markets.
- Current Reserve Status: The U.S. currently holds 415 million barrels in its Strategic Petroleum Reserve, approximately 58% of its authorized capacity of 714 million barrels, and Trump's decisions will significantly influence the U.S.'s role and leverage in the international energy market.
See More
Surge in Gas Prices Impacts Gig Economy Workers
- Gas Price Surge: The average price of unleaded gasoline has jumped 22% over the past month to about $3.59 per gallon, marking the highest level since May 2024, which directly impacts gig economy workers reliant on their vehicles for income.
- Gig Economy Adaptation: Many gig workers, including Uber and DoorDash drivers, are adjusting their strategies to cope with high fuel prices, with some seeking additional income sources or reducing personal vehicle use to mitigate costs and ensure profitability.
- Call for Policy Changes: Gig workers are urging platform companies to implement additional gas surcharges to alleviate the burden of soaring fuel prices, similar to measures taken after Russia's invasion of Ukraine in 2022, highlighting the urgent need for policy support.
- Increased Economic Instability: As fuel prices continue to rise, the economic instability faced by gig workers intensifies, particularly in the current tight labor market where finding alternative employment opportunities is challenging, further exacerbating the vulnerability of this workforce.
See More
IEA Releases Emergency Oil Reserves Amid Supply Shock
- Emergency Oil Release: The IEA member countries are releasing 400 million barrels of oil in response to the Strait of Hormuz supply shock, with the U.S. contributing 172 million barrels, which may increase household expenses as oil prices rally again.
- Market Reaction: Stock futures are lower this morning due to rising oil prices, reflecting market concerns about the ongoing Iran conflict, and until there is evidence of resolution, the risk of elevated oil prices remains.
- Layoffs and Investment: Atlassian announced a 10% workforce reduction, equating to about 1,600 employees, with the CEO stating this will help self-fund further investments in AI and enterprise sales, highlighting challenges in the traditional software model.
- Private Fund Restrictions: Morgan Stanley and Cliffwater have restricted withdrawals on private credit funds, with Morgan Stanley fulfilling less than half of an 11% redemption request on an $8 billion fund, indicating liquidity issues in the private credit market.
See More
Airlines Adjust Fares Amid Soaring Fuel Prices
- Fuel Surcharge Increase: Cathay Pacific announced it would nearly double fuel surcharges starting March 18, reflecting the pressure on airlines from soaring fuel prices due to the U.S. and Israel's attacks on Iran, which may impact consumer travel choices.
- Flight Adjustment Risks: Air New Zealand stated it would suspend its financial outlook and make initial fare adjustments if fuel markets and operating conditions remain unstable, highlighting the vulnerability of airlines in a high fuel price environment, potentially affecting profitability.
- Demand and Pricing Power: Despite rising fuel prices, United Airlines CEO Scott Kirby noted that travel demand remains strong, and if this trend continues, airlines may gain more pricing power; however, this will depend on the duration of the conflict.
- Delayed Market Response: Analysts expect airlines to face the most acute financial impact in the next 30-90 days, as they booked yields for flights assuming lower fuel prices, making it difficult to adjust fares quickly, which could lead to earnings hits in the first quarter.
See More
IEA Announces Historic Release of Oil Reserves Amid Middle East Conflict
- Historic Reserve Release: The International Energy Agency's decision to release 400 million barrels of crude oil marks the largest coordinated drawdown since its inception in 1974, aimed at addressing global oil supply disruptions caused by the Middle East conflict, highlighting policymakers' serious concerns over soaring oil prices.
- U.S. Strategic Reserve Involvement: The U.S. will tap 172 million barrels from its Strategic Petroleum Reserve as part of the global coordinated effort; however, oil prices surged over 8%, indicating market skepticism regarding the effectiveness of these measures in quickly alleviating supply shocks.
- Strait of Hormuz Transport Disruption: Approximately 20 million barrels of crude oil and petroleum products transit the Strait of Hormuz daily, accounting for about 20% of global oil consumption, and the conflict has severely disrupted these flows, exacerbating market fears over oil prices.
- Future Price Expectations: Analysts predict that if the conflict lasts for months, oil prices could surge to $120 to $150 per barrel to curb demand, particularly in developing economies, indicating that the market may be underestimating the potential scale and duration of the crisis.
See More
Rising Oil Prices Impact Market, Cramer Analyzes Investment Themes
- Oil Price Surge Impact: The ongoing Iran war has driven WTI crude oil prices above $88 per barrel, marking a year-to-date increase of over 50%, which could pressure the stock market, as evidenced by the S&P 500's slight decline amid a 5% rise in oil prices.
- Strategic Petroleum Reserve Release: President Trump announced the release of the U.S. Strategic Petroleum Reserve to alleviate energy prices, while the International Energy Agency agreed to release 400 million barrels of oil to address global supply disruptions, although these measures are seen as temporary fixes.
- Strong Data Center Infrastructure: Cramer highlighted Oracle's robust earnings as validation of the AI-driven data center infrastructure theme, indicating that its buildout is progressing better than expected, potentially offering new opportunities for investors.
- Ongoing Memory Shortage: Commentary from Hewlett Packard Enterprise suggests that the shortage of memory used in AI and computing systems may persist longer than anticipated, providing potential investment opportunities for related companies.
See More
Trump Plans to Tap Strategic Petroleum Reserve Amid Iran War
- Energy Cost Mitigation: Trump announced plans to tap the Strategic Petroleum Reserve to lower energy costs, a move expected to alleviate pressures from global oil supply disruptions due to the Iran war, although it may impact reserve levels in the short term.
- Rising Gas Prices: Gasoline prices in the U.S. have surged to about $3.58 per gallon, a nearly 22% increase from last month's $2.94, which will directly affect consumer spending and economic recovery efforts.
- International Energy Agency Action: The International Energy Agency agreed to release 400 million barrels of oil to address supply disruptions, marking the largest stockpile release in over 50 years, highlighting the urgent need for stability in global markets.
- Current Reserve Status: The U.S. currently holds 415 million barrels in its Strategic Petroleum Reserve, approximately 58% of its authorized capacity of 714 million barrels, and Trump's decisions will significantly influence the U.S.'s role and leverage in the international energy market.
See More
