NEW YORK (TheStreet) -- Shares of Phillips 66 (PSX) are up 2.71% to $75.76 in after-hours trading after U.S. stocks rose, sending the S&P 500 Index to its best day since October, as energy companies rallied and data on construction spending boosted confidence in the economy, Bloomberg reports.
The Houston-based energy manufacturing and logistics company rose 2.64% on the day as energy shares climbed 1.3%, even as oil resumed a selloff.
"The energy sector is up while oil is down. Maybe the thought is the sector fell too far, too fast," Boston Advisors LLC analyst James Gaul told Bloomberg.
Additionally, a rise in energy shares helped propel the Dow Jones Industrial Average to 17,879.55, a new intraday high Tuesday.
Shares of Phillips 66 traded with heavy volume today as more than 5.17 million shares changed hands by the market close in New York, compared to the average of 4.78 million.
Separately, TheStreet Ratings team rates PHILLIPS 66 as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate PHILLIPS 66 (PSX) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 120.6% when compared to the same quarter one year prior, rising from $535.00 million to $1,180.00 million.
- 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.86 is somewhat weak and could be cause for future problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, PHILLIPS 66 has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: PSX Ratings Report