Phillips 66 (PSX) Hits New Lifetime High

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 $259.4 million.
  • PSX has traded 87,527 shares today.
  • PSX is trading at a new lifetime high.

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More details on PSX:

Phillips 66 operates as an energy manufacturing and logistics company. It operates in four segments: Midstream, Chemicals, Refining, Marketing and Specialties. The stock currently has a dividend yield of 2%. PSX has a PE ratio of 13.2. Currently there are 8 analysts that rate Phillips 66 a buy, no analysts rate it a sell, and 3 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 $45.9 billion and is part of the basic materials sector and energy industry. Shares are up 1.3% year-to-date as of the close of trading on Friday.

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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 increase in stock price during the past year, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 16.7% when compared to the same quarter one year prior, going from $708.00 million to $826.00 million.
  • PHILLIPS 66 has improved earnings per share by 22.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PHILLIPS 66 reported lower earnings of $5.91 versus $6.41 in the prior year. This year, the market expects an improvement in earnings ($7.21 versus $5.91).
  • The gross profit margin for PHILLIPS 66 is currently extremely low, coming in at 2.91%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.09% trails that of the industry average.
  • Net operating cash flow has decreased to $897.00 million or 31.26% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, PHILLIPS 66 has marginally lower results.

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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