Stock Price & Analysis

Analysis and Insights

Technical Analysis:

PSX's stock price is showing signs of stability with a recent uptrend. The RSI_14 is at 49.72, indicating a neutral position, while the MACD suggests a bullish signal with a positive crossover. The stock is trading above its 20-day SMA but below the 50-day SMA, indicating short-term support with potential upside.

Fibonacci Levels:

The Fibonacci pivot point is at 126.11, with resistance levels at 129.35 and 131.36. The stock is currently trading near the pivot, suggesting it may find support here.

Fundamental Analysis:

Phillips 66's decision to close its Los Angeles refinery by October could lead to tighter fuel supply and higher prices, potentially benefiting the company. The refinery closure is part of broader challenges in California's refining business.

Valuation and Shareholder Yield:

PSX has a Shareholder Yield rating of 65%, indicating moderate returns to shareholders. The company's focus on returning cash to shareholders is a positive sign for investors.

Market Sentiment:

The fear/greed index is at 28.0857, indicating a fear sentiment. This could present a buying opportunity if the fundamentals remain strong.

Conclusion:

Given the technical support, potential supply constraints from the refinery closure, and moderate valuation, PSX stock presents a buying opportunity. Investors should consider entering at current levels, with a target of $131 and stop-loss below $122.

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The price prediction for PSX stock in 2025 is $140 per share. This forecast is supported by the company's strategic refinery optimization and analyst upgrades. The closure of its Los Angeles refinery is expected to improve margins, while analysts have raised their price targets, indicating confidence in the stock's potential.

The S1 support level for PSX Stock is $121.78 ,The R1 resistant level for PSX Stock is $128.83.

As of the end of day on 2025-04-01, the price of PSX Stock was $124.35.

The target price for PSX Stock according to analyst rating is 138.57, with the highest price target at 162.00 and the lowest at 126.00. Analysts have a Moderate Buy rating on PSX Stock overall.

The market cap of PSX is $50.7B.

Analysis and Insights

Phillips 66 (PSX) appears to be overvalued based on several key metrics and recent developments:

1. Valuation Metrics:

   • PSX's forward P/E ratio of 16.33 (Q4 2024) is higher than its historical average and industry peers, indicating a premium valuation.
   • The EV/EBITDA ratio of 10.17 suggests the stock is trading at a higher multiple compared to its earnings potential.

2. Recent News Impact:

   • The planned closure of its Los Angeles refinery by October 2025 could tighten fuel supply and increase prices, potentially benefiting margins short-term. However, this also reflects broader operational challenges in California's refining sector.

3. Shareholder Yield:

   • PSX received a 65% rating based on the Shareholder Yield Investor model, which focuses on cash returned to shareholders. While positive, it suggests moderate interest from analysts.

4. Stock Performance:

   • The stock is currently trading at $126.48, with a slight pre-market gain of 0.21%. While the stock has performed well, its valuation may not fully align with long-term fundamentals.

Conclusion

While PSX has strong operational fundamentals and is taking steps to enhance value, its current valuation metrics and premium pricing suggest the stock may be overvalued compared to industry peers. Investors should carefully assess whether the stock's price reflects its long-term growth prospects.

Phillips 66 is a diversified and integrated downstream energy provider with midstream, chemicals, refining, and marketing and specialties businesses. The Company’s segments include Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). Its Midstream segment provides crude oil and refined petroleum product transportation, terminaling and processing services, as well as natural gas and natural gas liquids (NGL) transportation, storage, fractionation, gathering, processing and marketing services, mainly in the United States. The Chemicals segment consists of its 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 and aviation fuels, as well as renewable fuels. Its Marketing & Specialties segment purchases for resale and markets refined petroleum products and renewable fuels.

PSX stock is projected to reach $140-$160 by 2030, driven by operational adjustments and market dynamics. The refinery closure may tighten fuel supply, potentially raising prices and benefiting PSX. Analysts expect moderate growth amid sector challenges.

PSX has a total of 14000 employees.