Houston, Texas-based Phillips 66 (PSX) is a diversified energy manufacturing and logistics company. The company operates through Midstream, Chemicals, Refining, and Marketing & Specialties segments. With a market cap of $56.1 billion, its operations span various countries in the Americas, Europe, and internationally.
The energy giant has underperformed the broader market over the past year. Despite rallying 15.9% over the past 52 weeks, PSX stock has lagged behind the S&P 500 Index’s ($SPX) 28.1% returns. PSX saw a marginal decline in 2024 compared to SPX’s 17.3% gains on a YTD basis.
Narrowing the focus, PSX has outperformed the Vaneck Oil Refiners ETF’s (CRAK) 6% gain over the past 52 weeks but lagged behind CRAK’s 2.9% returns on a YTD basis.
Shares of Phillips 66 rose 4.8% following the release of its Q2 earnings on Jul. 30. The company's sales grew 8.7% annually to $38.1 billion, exceeding Wall Street’s expectations by 9.7%. Despite its EPS declined 40.3% to $2.31, it surpassed the consensus estimates by 9%.
For the current fiscal year, ending in December, analysts expect Phillips 66 to report an EPS decline of 40% to $9.49. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in two of the past four quarters while missing the estimates on two other occasions.
Among the 18 analysts covering the PSX stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This configuration is slightly less bullish than a month ago, with 11 analysts suggesting a “Strong Buy.”
On Aug. 5, Barclays analyst Theresa Chen maintained a “Hold” rating with a price target of $138.
PSX’s mean price target of $152.19 represents a premium of 15% from current price levels. The Street-high target of $176 indicates a potential upside of 32.9%.
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