We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Retain Strategy is Apt for Phillips 66 (PSX) Stock Now
Read MoreHide Full Article
Phillips 66 (PSX - Free Report) has surged 47.6% in the past year compared with the industry’s 23.5% rise.
What's Favoring the Stock?
PSX boasts a diversified business model, with substantial involvement in refining midstream, chemicals, and marketing & specialties. Across all its operations, Phillips 66 maintains a strong presence in terms of safety, profitability, scale and competitive advantages.
The company is increasingly prioritizing segments such as midstream, renewables and chemicals, enhancing the stability of its business model. With a U.S. pipeline network spanning 72,000 miles, Phillips 66 anticipates that nearly 80% of its midstream contracts will be fee-based, indicating a resilient business model with minimal susceptibility to fluctuations in commodity prices.
Phillips 66, currently carrying a Zacks Rank #3 (Hold), has a strong focus on returning capital to shareholders. Since July 2022, the company has returned a massive $9.9 billion through both dividends and share repurchases. By the end of this year, it expects to meet its target of returning $13 billion to $15 billion to shareholders.
Risks
Phillips 66’s refining business is exposed to extreme volatility in commodity prices since the end products are made with raw crude oil. Rising input costs hurt the company’s refining business.
Sunoco, the leading independent fuel distributor in the United States, has a stable business model and relatively lower exposure to commodity price volatility. This is because the partnership distributes fuel to branded distributors under long-term contracts.
The business scenario for ProPetro Holding is bright, given the current favorable oilfield service demand. Thus, it secures handsome cashflows as it is a leading provider of pressure pumping and other complementary services. For 2024 and 2025, ProPetro Holding has witnessed upward earnings estimate revisions over the past 30 days.
Vista Energy, a leading exploration and production company, has a significant presence in Vaca Muerta, a highly productive shale oil and gas play outside of North America. The company has set an ambitious goal of achieving net-zero emissions by 2026.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Why Retain Strategy is Apt for Phillips 66 (PSX) Stock Now
Phillips 66 (PSX - Free Report) has surged 47.6% in the past year compared with the industry’s 23.5% rise.
What's Favoring the Stock?
PSX boasts a diversified business model, with substantial involvement in refining midstream, chemicals, and marketing & specialties. Across all its operations, Phillips 66 maintains a strong presence in terms of safety, profitability, scale and competitive advantages.
The company is increasingly prioritizing segments such as midstream, renewables and chemicals, enhancing the stability of its business model. With a U.S. pipeline network spanning 72,000 miles, Phillips 66 anticipates that nearly 80% of its midstream contracts will be fee-based, indicating a resilient business model with minimal susceptibility to fluctuations in commodity prices.
Phillips 66, currently carrying a Zacks Rank #3 (Hold), has a strong focus on returning capital to shareholders. Since July 2022, the company has returned a massive $9.9 billion through both dividends and share repurchases. By the end of this year, it expects to meet its target of returning $13 billion to $15 billion to shareholders.
Risks
Phillips 66’s refining business is exposed to extreme volatility in commodity prices since the end products are made with raw crude oil. Rising input costs hurt the company’s refining business.
Stocks to Consider
Better-ranked energy companies include Sunoco LP (SUN - Free Report) , ProPetro Holding Corp. (PUMP - Free Report) and Vista Energy SAB de CV (VIST - Free Report) . While Sunoco sports a Zacks Rank #1 (Strong Buy), ProPetro Holding and Vista Energy carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco, the leading independent fuel distributor in the United States, has a stable business model and relatively lower exposure to commodity price volatility. This is because the partnership distributes fuel to branded distributors under long-term contracts.
The business scenario for ProPetro Holding is bright, given the current favorable oilfield service demand. Thus, it secures handsome cashflows as it is a leading provider of pressure pumping and other complementary services. For 2024 and 2025, ProPetro Holding has witnessed upward earnings estimate revisions over the past 30 days.
Vista Energy, a leading exploration and production company, has a significant presence in Vaca Muerta, a highly productive shale oil and gas play outside of North America. The company has set an ambitious goal of achieving net-zero emissions by 2026.