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 $54.3 billion, its operations span various countries in the Americas, Europe, and internationally.
The energy giant has underperformed the broader market over the past year. Despite rallying 11.9% over the past 52 weeks, PSX stock has lagged behind the S&P 500 Index’s ($SPX) 31.1% returns. PSX saw a 1.3% decline in 2024 compared to SPX’s 24.7% gains on a YTD basis.
Narrowing the focus, PSX has outperformed the Vaneck Oil Refiners ETF’s (CRAK) 9.8% gain over the past 52 weeks and an 8.1% dip on a YTD basis.
PSX shares plummeted 4.4% after posting its third-quarter earnings on Oct. 29. On the bright side, its adjusted EPS of $2.04 surpassed Wall Street’s expectations. However, its refining segment was hit by a drop in realized margins, driven by lower crack spreads, which fell to $8.31 per barrel in the quarter from $19.06 a barrel, driving the stock down.
For the current fiscal year, ending in December, analysts expect Phillips 66 to report an EPS decline of 52.1% to $7.57. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three of the past four quarters while missing the estimates on another occasion.
Among the 19 analysts covering the PSX stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This configuration is slightly more bullish than a month ago, with ten analysts suggesting a “Strong Buy.”
On Nov. 11, Barclays PLC (BCS) reduced its price target for Phillips 66 from $133 to $124 while maintaining an “Equal-Weight” rating on the stock.
PSX’s mean price target of $145.35 represents a premium of 10.6% from current price levels. The Street-high target of $167 indicates a potential upside of 27.1%.
