Trade-Ideas: Phillips 66 (PSX) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Phillips 66 ( PSX) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Phillips 66 as such a stock due to the following factors:

  • PSX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $275.2 million.
  • PSX has traded 5.2 million shares today.
  • PSX is trading at a new lifetime high.

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More details on PSX:

Phillips 66 operates as an independent downstream energy company. The company operates in three segments: Refining and Marketing (R&M), Midstream, and Chemicals. The stock currently has a dividend yield of 2.2%. PSX has a PE ratio of 12.1. Currently there are 6 analysts that rate Phillips 66 a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Phillips 66 has been 3.5 million shares per day over the past 30 days. Phillips 66 has a market cap of $41.7 billion and is part of the basic materials sector and energy industry. Shares are up 31.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Phillips 66 as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:
  • PSX's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • PSX's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.07, which illustrates the ability to avoid short-term cash problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 66.5% when compared to the same quarter one year ago, falling from $1,599.00 million to $535.00 million.
  • The gross profit margin for PHILLIPS 66 is currently extremely low, coming in at 2.08%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.31% trails that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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