Why it is Worth Buying Phillips 66 (PSX) Stock Right Away
Phillips 66 PSX has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days.
What's Favoring the Stock?
PSX has a diversified business model, with a significant presence in businesses related to refining midstream, chemicals and marketing & specialties. In each of the operations, Phillips 66 has a good footprint pertaining to safety, profitability, size and competitive strengths.
It is focusing more on businesses like midstream, renewables and chemicals, which makes the business model more stable. The firm’s premier midstream operations comprise the U.S. pipeline network, spread across 22,000 miles. The midstream portfolio includes multiple refined product terminals, crude oil terminals and NGL terminals. Thus, with a robust midstream business portfolio, Phillips 66 will generate stable cashflows with lower exposure to energy business volatility.
The firm’s financial strength is reflected in its lower debt exposure compared with the composite stocks belonging to the industry. PSX, carrying a Zacks Rank #2 (Buy), also has a disciplined capital allocation strategy. Further, it has more than $12 billion in liquidity.
Other Stocks to Consider
Other prospective players in the energy space include Marathon Petroleum Corporation MPC, Sunoco LP SUN and Valero Energy Corporation VLO. While Marathon Petroleum and Valero Energy carry a Zacks Rank #2, Sunoco sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum is a well-known name since it operates the largest refining system in the nation. In the past seven days, Marathon Petroleum has witnessed upward earnings estimate revisions for 2023.
Sunoco has a stable business model while transporting motor fuel to roughly 10,000 convenience stores. In the past 60 days, Sunoco has witnessed upward earnings estimate revisions for 2023.
Valero Energy is well poised to gain from constraint capacity in global refining activities and favorable demand for refined products. This, in turn, will possibly drive utilization in refining capacity and hence will boost cashflows.
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Valero Energy Corporation (VLO) : Free Stock Analysis Report
Sunoco LP (SUN) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
