Phillips 66 Stock Hold Recommendation Reiterated (PSX)
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- Powered by its strong earnings growth of 123.00% and other important driving factors, this stock has surged by 94.69% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although PSX had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- PHILLIPS 66 reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($8.10 versus $6.48).
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
- PSX, with its decline in revenue, slightly underperformed the industry average of 8.6%. Since the same quarter one year prior, revenues fell by 10.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for PHILLIPS 66 is currently extremely low, coming in at 4.50%. Regardless of PSX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.70% trails the industry average.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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