Phillips 66 (PSX): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Phillips 66 ( PSX) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Phillips 66 fell $0.80 (-1.2%) to $63.84 on average volume. Throughout the day, 3,961,645 shares of Phillips 66 exchanged hands as compared to its average daily volume of 4,627,300 shares. The stock ranged in price between $63.70-$65.41 after having opened the day at $64.75 as compared to the previous trading day's close of $64.64. Other companies within the Energy industry that declined today were: Houston American Energy Corporation ( HUSA), down 14.8%, Comstock Resources ( CRK), down 6.5%, Barnwell Industries ( BRN), down 6.5% and Halcon Resources ( HK), down 6.2%.
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Phillips 66 operates as an independent downstream energy company. The company operates in three segments: Refining and Marketing (R&M), Midstream, and Chemicals. Phillips 66 has a market cap of $39.7 billion and is part of the basic materials sector. The company has a P/E ratio of 8.3, below the S&P 500 P/E ratio of 17.7. Shares are up 22.3% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Phillips 66 a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Phillips 66 as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the positive front, Saratoga Resources ( SARA), down 14.2%, Andatee China Marine Fuel Services Corporat ( AMCF), down 13.5%, TransAtlantic Petroleum ( TAT), down 10.6% and Apco Oil and Gas International ( APAGF), down 7.4% , were all gainers within the energy industry with Ultra Petroleum Corporation ( UPL) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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