Phillips 66 Stock: Is PSX Underperforming the Energy Sector?
Houston, Texas-based Phillips 66 (PSX) is a diversified energy manufacturing and logistics company. It operates through Midstream, Chemicals, Refining, and Marketing & Specialties segments. With a market cap of $51.4 billion, Phillips 66's operations span numerous countries across the Americas, Europe, and internationally.
Companies worth $10 billion or more are generally described as “large-cap stocks,” PSX fits the bill perfectly. Given the company’s extensive operations, its valuation above this mark is not surprising.
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Despite its notable strengths, Phillips 66 has tanked 27.5% from its all-time high of $174.08 touched on Apr. 5. Meanwhile, PSX stock has dipped 1.9% over the past three months, performing slightly better than Energy Select Sector SPDR Fund’s (XLE) 3.9% decline during the same time frame.
Over the longer term, Phillips 66’s performance has remained much grimmer. PSX stock plummeted 15.4% over the past 52 weeks and 1.5% over the past six months, significantly underperforming XLE’s 49 basis point dip over the past year and 1.7% gains over the past six months.
To confirm the downtrend, Phillips 66 has remained consistently below its 200-day moving average since early August 2024 and traded along its downward-sloping 50-day moving average over the past several months.
Phillips 66’s stock prices dropped 2.5% after the release of its mixed Q4 results on Jan. 31. While the company reported a 12.3% year-over-year decline in revenues to approximately $34 billion, it surpassed the Street’s expectations by 6.1%. Phillips 66’s performance was primarily impacted due to thinner crack spreads which impacted margins across the industry. Alongside, the company’s earnings were further impacted due to accelerated depreciation related to the shutdown of Los Angeles Refinery.
On a positive note, the company improved its refining performance during the quarter by running on above-industry-average crude utilization, which helped it achieve a $1/barrel cost reduction. However, its adjusted earnings still dropped to a negative $61 million, down from $1.4 billion adjusted profits reported in the year-ago quarter.
Phillips 66 has outperformed its peer Marathon Petroleum Corporation’s (MPC) 23.1% decline over the past 52 weeks and a 17.1% dip over the past six months.
Among the 19 analysts covering the PSX stock, the consensus rating is a “Moderate Buy.” Its mean price target of $141.37 indicates a 12% upside from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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