How Is Phillips 66’s Stock Performance Compared to Other Oil Refiners Stocks?
Phillips 66 (PSX), headquartered in Houston, Texas, operates as an energy manufacturing and logistics company. With a market cap of $45.7 billion, the company’s operations include oil refining, marketing, and transportation along with chemical manufacturing and power generation.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PSX fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the oil & gas refining & marketing industry. PSX excels in the refining industry with a 1.9 million barrels per day capacity, driven by strategic marketing and a strong network of 1,390 brand-licensing agreements. With a focus on sustainability, PSX’s transition to renewable diesel production in Rodeo, California, positions it for long-term success in the evolving energy landscape.
Despite its notable strength, PSX slipped 25.2% from its 52-week high of $150.12, achieved on Jul. 31, 2024. Over the past three months, PSX stock declined 6.3%, underperforming the VanEck Oil Refiners ETF’s (CRAK) 8.1% gains during the same time frame.
In the longer term, shares of PSX declined 1.5% on a YTD basis and fell 18.3% over the past 52 weeks, underperforming CRAK’s YTD 10.2% gains and 14.4% losses over the last year.
To confirm the bearish trend, PSX has been trading below its 200-day moving average since early August, 2024, with minor fluctuations. However, the stock is trading above its 50-day moving average since mid-May.
PSX’s setback was due to weakening refined product demand in the U.S. and China, coupled with the result of new refining capacity coming online.
On Apr. 25, PSX shares closed down marginally after reporting its Q1 results. Its adjusted loss of $0.90 per share did not meet Wall Street expectations of adjusted loss of $0.77 per share.
In the competitive arena of oil & gas refining & marketing, Marathon Petroleum Corporation (MPC) has taken the lead over PSX, showing resilience with a 13.4% uptick on a YTD basis and 9% losses over the past 52 weeks.
Wall Street analysts are moderately bullish on PSX’s prospects. The stock has a consensus “Moderate Buy” rating from the 18 analysts covering it, and the mean price target of $130.17 suggests a potential upside of 16% from current price levels.
On the date of publication, Neha Panjwani 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.