Key Takeaways Phillips 66's Q3 earnings are expected to jump nearly 377% y/y despite a projected 3.6% revenue dip.High refining utilization and strong crack spreads may offset rising crude costs and support Q3 profits.PSX's diversified business offers stability, but its 12.52x EV/EBITDA exceeds the industry's 6.36x average. Phillips 66 (PSX - Free Report) is set to report third-quarter 2026 results on Oct. 28, before the opening bell.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $12.02 per share, implying an improvement of almost 377% from the year-ago reported number. It has witnessed one upward estimate revision in the past seven days. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $33.7 billion, suggesting a decline of 3.6% from the year-ago actuals.
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PSX beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 62.6%. This is depicted in the graph below:
Q3 Earnings Whispers for PSXOur proven model doesn’t predict an earnings beat for PSX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That isn’t the case here.
The leading refining player has an Earnings ESP of 0.00%. PSX currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PSX’s Factors to NoteTo understand how oil prices behaved in the September quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for July, August and September of this year were $80.46 per barrel, $83.90 per barrel and $97.31 per barrel, respectively, per EIA data. Commodity prices were $68.39 per barrel, $64.86 per barrel and $63.96 per barrel in the prior-year, respective quarters, according to the EIA.
A constructive oil-price backdrop, driven by the Iran war, is likely to have hurt the refining business of Phillips 66 in the third quarter, since the input costs to produce final products like gasoline, diesel fuel and others were higher. A similar dynamic is likely to have affected Par Pacific Holdings, Inc. (PARR - Free Report) and Valero Energy Corporation (VLO - Free Report) , belonging to the same space.
However, the high utilization of refineries in the United States to meet resilient demand is likely to have largely offset the negative impacts of high input costs.
PSX’s Price Performance & ValuationPSX's stock has surged 110.8% over the past year, underperforming the industry’s 132.9% growth. PARR has jumped 100.8% over the same time frame, while VLO has gained 149.2%.
One-Year Price Chart
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Despite PSX’s stock price underperforming the industry, the company appears relatively overvalued. The company's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) is 12.52x, reflecting that it is trading at a premium compared with the industry average of 6.36x. VLO and PARR are valued lower at 9.00x and 3.37x, respectively.
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Investment Thesis of PSXPSX noted that there aren’t enough refineries or products globally right now because much refining capacity is offline and fuel inventories are low. This shortage helps keep refining margins, also called crack spreads, high. Management believes these shortages may take longer to resolve than in 2022, which is expected to boost the energy major’s refining profits in the September quarter and in 2027. The broader scenario is also likely to favor other refiners like VLO and PARR.
Although a leading refiner, PSX, unlike most of its refining peers, has diversified into midstream and chemicals. Along with investing in refining operations, Phillips 66 is allocating significant capital to midstream.
The midstream business, by its very definition, is stable since the company generates stable cash flows as the assets are being utilized for the long term and is less vulnerable to commodity price volatility. Hence, having a diversified business model, PSX is insulated from commodity price volatility to a great extent.
Last WordGiven its relatively stable business model, it might be the ideal time for investors to bet on the stock. In fact, investors are willing to pay a premium for this stock as reflected in the valuation picture.
Analysts on Wall Street project that Phillips 66 (PSX - Free Report) will announce quarterly earnings of $12.02 per share in its forthcoming report, representing an increase of 377% year over year. Revenues are projected to reach $33.72 billion, declining 3.6% from the same quarter last year.
Over the last 30 days, there has been an upward revision of 20.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Phillips 66 metrics that are commonly monitored and projected by Wall Street analysts.
The consensus estimate for 'Revenues and Other Income- Sales and other operating revenues' stands at $33.66 billion. The estimate points to a change of -2.5% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenues and Other Income- Equity in earnings of affiliates' will likely reach $303.56 million. The estimate suggests a change of -9.9% year over year.
According to the collective judgment of analysts, 'Total sales and other operating revenues- Renewable Fuels' should come in at $859.74 million. The estimate indicates a change of -46.6% from the prior-year quarter.
The average prediction of analysts places 'Refining Margins - Western/Pacific (Per Barrel)' at $37.59 . The estimate compares to the year-ago value of $12.31 .
It is projected by analysts that the 'Refining Margins - Atlantic Basin/Europe (Per Barrel)' will reach $32.76 . The estimate compares to the year-ago value of $11.94 .
Analysts expect 'Refining Margins - Gulf Coast (Per Barrel)' to come in at $31.24 . The estimate is in contrast to the year-ago figure of $8.74 .
The collective assessment of analysts points to an estimated 'Refining Margins - Worldwide (Per Barrel)' of $35.65 . Compared to the current estimate, the company reported $12.15 in the same quarter of the previous year.
Analysts predict that the 'Refining Margins - Central Corridor (Per Barrel)' will reach $40.60 . Compared to the current estimate, the company reported $15.82 in the same quarter of the previous year.
Analysts forecast 'Refining operations - West Coast - Crude oil capacity' to reach 105.00 thousands of barrels of oil per day. The estimate is in contrast to the year-ago figure of 244.00 thousands of barrels of oil per day.
Analysts' assessment points toward 'Chemicals - CPChem Externally Marketed Sales Volumes' reaching 5799 millions of pounds. Compared to the present estimate, the company reported 6572 millions of pounds in the same quarter last year.
Based on the collective assessment of analysts, 'Refining operations - Central Corridor - Crude oil capacity' should arrive at 793.00 thousands of barrels of oil per day. The estimate compares to the year-ago value of 531.00 thousands of barrels of oil per day.
The consensus among analysts is that 'Refining operations - Central Corridor - Crude oil processed' will reach 754.70 thousands of barrels of oil per day. The estimate compares to the year-ago value of 549.00 thousands of barrels of oil per day.
View all Key Company Metrics for Phillips 66 here>>>
Over the past month, shares of Phillips 66 have returned +11.2% versus the Zacks S&P 500 composite's -1.2% change. Currently, PSX carries a Zacks Rank #1 (Strong Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Refining margins just surged to levels that make dividends look almost too safe, yet one of these three refiners carries nearly 12 times more debt than another.
In the latest close session, Phillips 66 (PSX - Free Report) was down 1.88% at $284.63. This change lagged the S&P 500's 1.21% loss on the day. Elsewhere, the Dow saw an upswing of 0.02%, while the tech-heavy Nasdaq depreciated by 2.6%.
Shares of the oil refiner witnessed a gain of 13.1% over the previous month, beating the performance of the Oils-Energy sector with its gain of 8.71%, and the S&P 500's loss of 0.03%.
The upcoming earnings release of Phillips 66 will be of great interest to investors. The company's earnings report is expected on October 28, 2026. The company is forecasted to report an EPS of $12.02, showcasing a 376.98% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $33.72 billion, showing a 3.59% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $31.17 per share and a revenue of $157.12 billion, indicating changes of +384.01% and +15.05%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 10.22% rise in the Zacks Consensus EPS estimate. Phillips 66 is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Phillips 66 is currently being traded at a Forward P/E ratio of 9.31. For comparison, its industry has an average Forward P/E of 8.31, which means Phillips 66 is trading at a premium to the group.
It is also worth noting that PSX currently has a PEG ratio of 0.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Oil and Gas - Refining and Marketing industry stood at 0.22 at the close of the market yesterday.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 4, placing it within the top 2% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Phillips 66 (PSX - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Phillips 66 currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for PSX that show why this oil refiner shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For PSX, shares are up 5.39% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 2.84% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.34% compares favorably with the industry's 7.58% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Phillips 66 have increased 41.38% over the past quarter, and have gained 126.31% in the last year. In comparison, the S&P 500 has only moved 3.92% and 15.74%, respectively.
Investors should also take note of PSX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now PSX is averaging 2,509,771 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with PSX.
Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PSX's consensus estimate, increasing from $24.44 to $31.44 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that PSX is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Phillips 66 on your short list.
Phillips 66 (PSX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Four companies in refining, auto retail, semiconductors, and specialty materials just raised their dividends, but the size of each raise tells almost nothing about which one can actually keep growing it.
When a board raises its dividend, it signals how much cash it expects to have, and four companies in unrelated industries (refining, auto retail, semiconductors, and specialty materials) just raised their payouts. The size of each raise matters less than how much buffer is left after it. Silicon Motion (NASDAQ:SIMO) made the biggest move, lifting its quarterly payout by about 15%. Coverage, cash flow, and balance sheets tell a different story about which raise can keep growing, and the list runs from least room to grow to most.
Penske Automotive Group: A Steady Raiser With a Buyout Price Attached
Penske Automotive Group (NYSE:PAG | PAG Price Prediction) raised its quarterly dividend to $1.46 from $1.44, declared October 14 and payable December 1 to holders of record on November 13. The forward annual payout of $5.84 against a $212 share price gives a yield of about 2.75%.
Dividend safety: The available record shows the dividend rising every quarter, from $0.43 in January 2021 to today’s $1.46. The company reported a trailing payout ratio of 41%, which leaves plenty of earnings behind each check. Second-quarter revenue rose 11.1% to $8.51 billion, with net income of $260.4 million. Its financial position is thinner: cash was at just $69.5 million, and other interest expense rose 53.2% year over year.
Bull case: Service and parts carry a 59.5% gross margin, and that recurring work holds up even when car sales slow. The 28.9% stake in Penske Transportation Solutions added $57.4 million in equity earnings. Six Toyota and Lexus acquisitions are expected to add about $2 billion in annualized revenue.
Risk: Penske Corporation and Mitsui agreed to take the company private for $212.00 per share in cash, with closing expected in the first quarter. The stock already trades at the deal price, so public shareholders stop receiving dividends once the deal closes, and this raise is likely the last one public shareholders get for long-term income growth.
Silicon Motion: The Biggest Raise Rests on Earnings That Have Not Yet Turned Into Cash
Silicon Motion declared four quarterly dividends of $0.575 per ADS on October 16, up from $0.500. The first is payable November 19. The forward annual rate of $2.30 on a $210 share price yields about 1.1%.
Dividend safety: Measured against earnings, coverage looks excellent. The trailing dividend matches about 26% of trailing EPS of $7.75. The payout sat at $0.500 from November 2021 through August 2026, so this is the first raise after a long freeze, with no growth streak behind it. Cash flow is the weak spot: second-quarter operating cash flow was negative $63.8 million, cash fell to $74.4 million, and inventory grew to $673 million.
Bull case: Second-quarter revenue rose 127% to $451 million, and non-GAAP EPS of $2.43 beat estimates by 15.35%. Third-quarter guidance calls for revenue of $519 million to $541 million as the company moves into AI infrastructure with its MonTitan enterprise SSD controllers. If that inventory turns into cash, the low payout ratio leaves room for more raises.
Risk: A proposed $800 million convertible notes offering due 2031 could dilute shareholders. It shows the company needs outside capital while operating cash flow is negative. The stock fell 22.83% over the past month.
Avient: Sixteen Straight Annual Raises, Funded by Record Margins
Avient (NYSE:AVNT) raised its quarterly dividend to $0.2825 from $0.275, declared October 6 and payable January 7. The forward annual payout of $1.13 on a $39.51 share price yields about 2.86%, the highest of the four.
Dividend safety: Avient called this its sixteenth consecutive annual dividend increase, and the payment record confirms annual increases from 2011 through 2026. On GAAP numbers, the trailing dividend uses about 58% of trailing EPS of $1.88. Measured against full-year adjusted EPS guidance of $3.10 to $3.25, the forward dividend works out to roughly 35% to 36%. The company holds $425.6 million in cash and plans to repay $100 million to $150 million in debt this year, with $50 million already repaid in the second quarter.
Bull case: Second-quarter adjusted EPS rose 20% to $0.96, and the adjusted EBITDA margin expanded 110 basis points to a record 18.3%. At about 12x forward earnings versus 21x trailing, investors are paying a moderate price for still-growing earnings, according to consensus figures. Avient also named Mike Frank as chief executive this month.
Risk: Specialty chemicals demand moves with the economy, and Avient is exposed to tariffs, raw material inflation, and supply disruptions in the Middle East. The raise was about 2.7%, suggesting debt reduction comes first for now.
Phillips 66: Two Raises This Year and Cash Flow to Spare
Phillips 66 (NYSE:PSX) raised its quarterly dividend to $1.33 from $1.27, declared October 16 and payable December 1. That is a raise of about 4.7%, and it comes on top of a February 11 declaration that lifted the payout from $1.20. The forward annual rate of $5.32 on a $294.92 share price yields about 1.8%, because the stock has gained 133.26% year to date.
Dividend safety: The trailing dividend takes about 28% of trailing EPS of $17.50. Cash flow coverage is stronger still. Second-quarter operating cash flow of $7.26 billion minus $726 million of capex left roughly $6.5 billion in free cash flow, about 12.9 times the $508 million paid in dividends. Cash ended the quarter at $4.1 billion. The quarterly payout has risen every year since it was at $0.90 in 2020.
Bull case: Worldwide realized refining margins rose to $24.08 per barrel in the second quarter from $10.11 in the first. The Golden Triangle and Ras Laffan polymers projects are set to come online in 2027, adding non-refining earnings. Chief Executive Mark Lashier listed capital priorities as “dividends, share repurchases and debt reduction,” with dividends first. The stock trades at about 10x forward earnings, per consensus data.
Risk: Refining is cyclical. First-quarter operating cash flow was negative $2.26 billion. Debt-to-capital rose to 48% from 39%, and total debt reached $27.1 billion, partly because of the Lindsey Oil Refinery acquisition. A weak-margin quarter can quickly wipe out cash flow.
Phillips 66 Has the Most Room to Keep Raising
Penske’s raise continues an impressive streak, but the buyout ends it for public shareholders. Silicon Motion’s payout ratio is the lowest, but its cash flow has not yet caught up with its earnings. Avient has the longest verified record of raises and a reasonable adjusted payout, though debt reduction is keeping its increases lowest. Phillips 66 has raised twice this year, pays out about 28% of earnings, and covered its dividend with free cash flow nearly 13 times last quarter, giving it the most room of the four to keep growing the payout.
Contact [email protected] for any questions or corrections.
Phillips 66 has handed investors a 133% gain this year and just bumped its dividend again, but a swelling debt load and volatile refining margins raise real questions about how long the raises can continue.
Phillips 66 (NYSE:PSX | PSX Price Prediction) raised its quarterly dividend by $0.06 on Oct. 16, bringing the payout to $1.33 per share. The prior rate was $1.27. That’s a 4.7% raise, or $5.32 a year. At the latest price of $294.43, the forward yield comes to about 1.8%. The yield is thin because the stock is up 132.87% year to date. Income investors need to know whether the cash behind the payout holds up once refining margins cool.
Refining Windfall Covers the Payout Many Times Over
In the second quarter, cash from operations excluding working capital hit $4,317 million, up from $699 million in Q1. Dividends of $508 million used only about 11.8% of that. Realized refining margins jumped to $24.08 per barrel from $10.11 in Q1. Adjusted EPS came in at $9.41, ahead of the $8.09 consensus.
Q1 showed the downside. Cash ex working capital of $699 million was above the Q2 dividend bill, and $839 million in mark-to-market derivative losses weighed on the quarter. Management describes today’s tight market as a supply shock. Brian Mandell said he expects stronger margins “potentially through the rest of 2027,” but refining remains the volatile part of the business.
Midstream Carries the Dividend
On the Q2 call, management said the steadier businesses are what actually fund the payout:
“Midstream, along with Marketing and Specialties, provides that consistent cash generation to cover the sustaining capital and the dividend and, today, a significant portion of our interest expense.”
Midstream makes roughly $1 billion a quarter and is on track for a $4.5 billion EBITDA run rate by year-end 2027. Two new chemical crackers expected in 2027 are the main source of a $500 million chemicals earnings-growth target.
Debt Paydown Competes With Buybacks
Total debt rose to $27.1 billion in Q1 from $19.7 billion. Over the same stretch, debt-to-capital rose to 48%. Since then, Phillips 66 has paid off its commercial paper and its term loan. CFO Kevin Mitchell expects net debt to fall below $16 billion by the end of 2026, and the company still plans to return more than 50% of operating cash flow, excluding working capital, to shareholders. Mark Lashier said buybacks should help the company.
“keep pace with our dividend increases even more dramatically.”
How Marathon and Valero Compare
Valero Energy (NYSE: VLO) pays $1.20 a quarter. It returned $2.6 billion to shareholders in Q2, a 59% payout of adjusted operating cash flow. Marathon Petroleum (NYSE:MPC) returned more than $2.80 billion in Q2, and its MPLX (NYSE:MPLX) distributions are expected to more than fund its 2026 dividend and standalone capital spending. Phillips 66 returned $887 million, or 21% of its cash flow ex working capital. For now, cutting debt comes first.
Track Record and Verdict for Income Investors
The quarterly dividend has risen from $0.20 in 2012. It rose every calendar year except 2020, when it stayed at $0.90. The new rate is 10.8% above the $1.20 paid a year earlier.
The payout looks built to last. Midstream and marketing cash covers it, and at today’s margins it takes up only a small share of operating cash. The main risk is the balance sheet. A sharp drop in crack spreads before debt falls toward the $16 billion target would slow future raises.
A yield this modest rarely shows the usual warning signs, but refiners are exactly where ugly surprises hide (we laid out the seven tells of a dividend about to be cut in a free report, here). The 1.8% yield will feel modest to anyone seeking high current income. Those who want dividend growth should watch debt paydown and midstream’s progress toward its 2027 run rate.
Contact [email protected] for any questions or corrections.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Phillips 66 (PSX - Free Report) Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. As of second-quarter 2026, the company’s Refining segment included 10 refineries in the United States and Europe, with worldwide crude oil capacity of about 2.0 million barrels per day.
PSX is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. PSX has a Growth Style Score of A, forecasting year-over-year earnings growth of 383.2% for the current fiscal year.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $6.68 to $31.12 per share. PSX boasts an average earnings surprise of +62.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PSX should be on investors' short list.
Phillips 66 (NYSE:PSX – Get Free Report)’s stock price reached a new 52-week high during trading on Wednesday. The company traded as high as $292.88 and last traded at $292.5640, with a volume of 2,608,585 shares traded. The stock had previously closed at $281.47.
Key Stories Impacting Phillips 66 Here are the key news stories impacting Phillips 66 this week:
Positive Sentiment: Barclays reportedly raised its price target for Phillips 66, supporting the longer-term outlook despite recent volatility. Barclays raises target for Phillips 66 stock Positive Sentiment: A Zacks analysis continues to identify PSX as a strong momentum stock, reflecting its substantial rally and improving investor interest. Why Phillips 66 is a Top Momentum Stock for the Long-Term Neutral Sentiment: Phillips 66 has not announced a fresh operational or earnings problem; investors are looking ahead to the company’s third-quarter results, scheduled for October 28. Phillips 66 Falls as Refining Trade Cools Neutral Sentiment: Analyst commentary describes Phillips 66 as a relatively predictable refining and energy investment, although valuation and refining-cycle risks remain important considerations. Phillips 66: Not My Favorite, But A Solid Pick For Investors Seeking Predictability Negative Sentiment: U.S. gasoline inventories unexpectedly increased by about 3.5 million barrels instead of declining, pressuring gasoline futures and investor expectations for refining margins. Negative Sentiment: A widely followed refining crack-spread measure fell roughly 5.8%, signaling that the margin environment supporting the sector’s rally may be cooling. Mizuho previously downgraded PSX to Neutral, arguing that much of the earnings improvement was already reflected in the stock. Phillips 66 Falls as Refining Trade Cools Negative Sentiment: Reported insider activity has been heavily weighted toward selling, with 14 sales versus one purchase over the past six months, adding a modest confidence concern after the stock’s strong run. Analyst Ratings Changes PSX has been the subject of a number of analyst reports. Raymond James Financial lifted their target price on shares of Phillips 66 from $240.00 to $300.00 and gave the company an “outperform” rating in a research note on Monday, September 14th. Wall Street Zen upgraded shares of Phillips 66 from a “buy” rating to a “strong-buy” rating in a research note on Sunday, July 26th. Barclays increased their price target on shares of Phillips 66 from $216.00 to $282.00 and gave the stock an “equal weight” rating in a research note on Monday. BMO Capital Markets raised their price target on shares of Phillips 66 from $260.00 to $310.00 and gave the company an “outperform” rating in a report on Thursday, September 17th. Finally, TD Cowen lifted their price objective on shares of Phillips 66 from $255.00 to $295.00 and gave the company a “buy” rating in a research note on Wednesday, September 30th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $266.88.
Get Our Latest Stock Report on PSX Phillips 66 Price Performance The stock has a 50 day moving average of $254.93 and a two-hundred day moving average of $206.43. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.00 and a current ratio of 1.32. The firm has a market capitalization of $115.45 billion, a P/E ratio of 19.97 and a beta of 0.71.
Phillips 66 (NYSE:PSX – Get Free Report) last posted its earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share for the quarter, topping the consensus estimate of $7.50 by $1.91. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%. The firm had revenue of $51 billion during the quarter, compared to analyst estimates of $43.60 billion. During the same period in the previous year, the company earned $2.38 EPS. Sell-side analysts predict that Phillips 66 will post 29.70 earnings per share for the current fiscal year.
Phillips 66 declared that its board has initiated a share repurchase plan on Friday, July 31st that permits the company to buy back $10.00 billion in shares. This repurchase authorization permits the oil and gas company to purchase up to 11.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.
Insider Activity at Phillips 66 In other Phillips 66 news, EVP Vanessa Sutherland sold 3,523 shares of the company’s stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $211.05, for a total transaction of $743,529.15. Following the completion of the sale, the executive vice president directly owned 27,537 shares in the company, valued at $5,811,683.85. This represents a 11.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Richard G. Harbison sold 52,100 shares of the company’s stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $223.76, for a total transaction of $11,657,896.00. Following the sale, the executive vice president owned 39,094 shares of the company’s stock, valued at $8,747,673.44. This trade represents a 57.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 112,886 shares of company stock worth $25,878,894. 0.40% of the stock is owned by insiders.
Hedge Funds Weigh In On Phillips 66 A number of institutional investors have recently made changes to their positions in PSX. BlackRock Inc. bought a new position in Phillips 66 in the 2nd quarter worth approximately $5,766,779,000. Bank of New York Mellon Corp bought a new stake in shares of Phillips 66 in the second quarter valued at approximately $1,093,206,000. Bank of America Corp DE bought a new stake in shares of Phillips 66 in the second quarter valued at approximately $469,970,000. Legal & General Group Plc acquired a new stake in shares of Phillips 66 in the second quarter worth $303,648,000. Finally, Deutsche Bank AG acquired a new stake in shares of Phillips 66 in the second quarter worth $271,128,000. 76.93% of the stock is currently owned by institutional investors.
About Phillips 66 (Get Free Report)
Phillips 66 is an energy manufacturing and logistics company engaged in the processing, transportation, storage and marketing of energy products. Its operations include refining crude oil into gasoline, diesel, jet fuel, lubricants and other refined products, as well as distributing and marketing fuels under the Phillips 66, 76 and JET brands.
The company also operates midstream infrastructure, including pipelines, terminals, processing facilities and storage assets that support the movement of crude oil, natural gas liquids and refined products.
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HOUSTON--(BUSINESS WIRE)--The board of directors of Phillips 66 has declared a quarterly dividend of $1.33 per share on Phillips 66 common stock, representing a $0.06 increase.
In the latest trading session, Phillips 66 (PSX - Free Report) closed at $289.20, marking a -2.72% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.33% for the day. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.08%.
Prior to today's trading, shares of the oil refiner had gained 12.34% outpaced the Oils-Energy sector's gain of 5.67% and the S&P 500's gain of 1.41%.
Analysts and investors alike will be keeping a close eye on the performance of Phillips 66 in its upcoming earnings disclosure. The company's earnings report is set to go public on October 28, 2026. The company's upcoming EPS is projected at $10.87, signifying a 331.35% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $33.72 billion, down 3.6% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $29.7 per share and a revenue of $157.06 billion, representing changes of +361.18% and +15.01%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Phillips 66. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.03% higher. At present, Phillips 66 boasts a Zacks Rank of #1 (Strong Buy).
Investors should also note Phillips 66's current valuation metrics, including its Forward P/E ratio of 10.01. This denotes a premium relative to the industry average Forward P/E of 8.76.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 4, this industry ranks in the top 2% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Phillips 66 (PSX - Free Report) Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. As of second-quarter 2026, the company’s Refining segment included 10 refineries in the United States and Europe, with worldwide crude oil capacity of about 2.0 million barrels per day.
PSX is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Oils-Energy stock. PSX has a Momentum Style Score of B, and shares are up 12.3% over the past four weeks.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $6.68 to $29.70 per share. PSX boasts an average earnings surprise of +62.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PSX should be on investors' short list.
Phillips 66 is rated Buy, benefiting from strong macro tailwinds but remaining less attractive than Valero Energy and Marathon Petroleum. PSX's vertical integration and focus on Canadian crude underpin business stability, supporting the highest dividend yield and longest growth streak among peers. Q2 results were robust, with EPS of $9.55 and revenue of $52B, reflecting strong operational execution and effective capital allocation toward debt reduction.
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Phillips 66?The final step today is to look at a stock that meets our ESP qualifications. Phillips 66 (PSX - Free Report) earns a #1 (Strong Buy) 14 days from its next quarterly earnings release on October 28, 2026, and its Most Accurate Estimate comes in at $11.92 a share.
By taking the percentage difference between the $11.92 Most Accurate Estimate and the $10.5 Zacks Consensus Estimate, Phillips 66 has an Earnings ESP of +13.53%. Investors should also know that PSX is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
PSX is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at Sunrun (RUN - Free Report) as well.
Sunrun is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on November 4, 2026. RUN's Most Accurate Estimate sits at $0.37 a share 21 days from its next earnings release.
For Sunrun, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.12 is +195.17%.
PSX and RUN's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
SummaryPhillips 66 stands to benefit from global refined product scarcity, driven by Russian supply disruptions and Gulf instability.I rate PSX a Buy, targeting 25% upside to $346 using a 12x PE multiple, higher than consensus due to its diversified business mix.Consensus underappreciates the duration and magnitude of elevated crack spreads; I expect normalization to take longer, supporting higher forward earnings.Key risks include rapid normalization of energy flows or resolution of the Ukraine conflict, but current geopolitics suggest continued supply tightness. Olga Kostrova /iStock via Getty Images
Introduction The Iran war and subsequent shock to energy prices led me to research and invest in refining, LNG, and oil stocks. At first, as a short-term hedge, they have now become a core part of the portfolio. As
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PBF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Phillips 66 uses AI to solve operational problems in days or weeks rather than months or years.Machine learning helps PSX optimize maintenance, shorten refinery turnarounds and extend operating intervals.PSX targets $1.50 per barrel in refining cost savings, while AI-related financial gains remain unquantified. Phillips 66 (PSX - Free Report) is expanding the use of artificial intelligence (AI) across its operations to improve refinery efficiency, accelerate problem-solving and enhance operational performance. During the second-quarter 2026 earnings call, management highlighted the company's growing adoption of AI-enabled technologies, allowing engineers to analyze operational data and implement solutions more efficiently. Management emphasized that AI helps employees analyze operational data and implement solutions within days or weeks rather than the months or years traditionally required.
Phillips 66 has been leveraging machine learning to optimize maintenance activities, shorten refinery turnaround periods and extend operating intervals between scheduled shutdowns. The company is building on these capabilities through a broader AI program that identifies successful applications and extends them across its operations. These initiatives complement its refining transformation efforts, which have already reduced operating costs by more than $1 per barrel, with management progressing toward $1.50 per barrel in savings.
Greater AI adoption presents opportunities to improve asset reliability, accelerate efficiency gains and strengthen refining profitability over time. Faster implementation of operational improvements is expected to reinforce Phillips 66's ongoing efforts to enhance refinery utilization and product yields. Although management has not separately quantified AI-related financial benefits, wider deployment of these technologies is expected to support sustainable cost efficiencies and strengthen the company's long-term earnings potential.
CVX & SHEL Leverage AI to Boost Operational EfficiencyApart from Phillips 66, energy giants Chevron Corporation (CVX - Free Report) and Shell plc (SHEL - Free Report) are increasingly integrating AI into their operations to improve efficiency, lower costs and strengthen profitability.
Chevron is leveraging AI-driven technologies to optimize production activities, monitor equipment performance and identify potential operational issues before they escalate. Similarly, Shell is deploying AI-powered predictive maintenance solutions across its energy operations, including refineries, to improve equipment reliability and minimize unplanned shutdowns. While CVX's AI initiatives focus on improving production efficiency and accelerating operational decisions, SHEL's digital technologies help maintenance teams identify equipment abnormalities and take preventive action.
The developments highlight how Chevron and Shell are using advanced analytics to reduce operational disruptions and enhance asset performance.
PSX’s Price Performance, Valuation & EstimatesPhillips 66 shares have skyrocketed 114.3% over the past year compared with the industry’s 136.4% whopping growth.
Image Source: Zacks Investment Research
From a valuation standpoint, PSX trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 12.27X. This is above the broader industry average of 6.25X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PSX's 2026 earnings has been unchanged over the past seven days.
Image Source: Zacks Investment Research
PSX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Phillips 66 (PSX - Free Report) closed at $278.18 in the latest trading session, marking a -1.21% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.6% for the day. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 0.64%.
Coming into today, shares of the oil refiner had gained 8.93% in the past month. In that same time, the Oils-Energy sector gained 2.1%, while the S&P 500 gained 1.34%.
Investors will be eagerly watching for the performance of Phillips 66 in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 28, 2026. The company is predicted to post an EPS of $10.41, indicating a 313.1% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $34.31 billion, down 1.92% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $29.01 per share and revenue of $157.49 billion. These totals would mark changes of +350.47% and +15.33%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 18.66% higher. Phillips 66 is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Phillips 66's current valuation metrics, including its Forward P/E ratio of 9.71. This signifies a premium in comparison to the average Forward P/E of 8.86 for its industry.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 4, this industry ranks in the top 2% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PSX in the coming trading sessions, be sure to utilize Zacks.com.
A strong stock as of late has been Phillips 66 (PSX - Free Report) . Shares have been marching higher, with the stock up 8.9% over the past month. The stock hit a new 52-week high of $282.64 in the previous session. Phillips 66 has gained 118.2% since the start of the year compared to the 37.2% move for the Zacks Oils-Energy sector and the 150.3% return for the Zacks Oil and Gas - Refining and Marketing industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 5, 2026, Phillips 66 reported EPS of $9.41 versus consensus estimate of $7.68.
For the current fiscal year, Phillips 66 is expected to post earnings of $29.01 per share on $157.49 in revenues. This represents a 350.47% change in EPS on a 15.33% change in revenues. For the next fiscal year, the company is expected to earn $29.79 per share on $147.13 in revenues. This represents a year-over-year change of 2.66% and -6.58%, respectively.
Valuation MetricsThough Phillips 66 has recently hit a 52-week high, what is next for Phillips 66? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Phillips 66 has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 8.9X. On a trailing cash flow basis, the stock currently trades at 19.1X versus its peer group's average of 12X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Phillips 66 currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Phillips 66 passes the test. Thus, it seems as though Phillips 66 shares could still be poised for more gains ahead.
How Does PSX Stack Up to the Competition?Shares of PSX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PBF Energy Inc. (PBF - Free Report) . PBF has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. PBF Energy Inc. beat our consensus estimate by 53.58%, and for the current fiscal year, PBF is expected to post earnings of $24.69 per share on revenue of $39.14 billion.
Shares of PBF Energy Inc. have gained 15.9% over the past month, and currently trade at a forward P/E of 3.62X and a P/CF of 55.51X.
The Oil and Gas - Refining and Marketing industry is in the top 2% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PSX and PBF, even beyond their own solid fundamental situation.
Key Takeaways Phillips 66 sees refining support from strong fuel demand and relatively tight global inventories.PSX's midstream assets provide stable cash flows and help reduce exposure to commodity price volatility.Phillips 66's shares rose 103.8% in the past year, while its 2026 earnings estimate recently increased. With West Texas Intermediate (“WTI”) oil prices currently hovering around $90 per barrel, according to Oilprice.com, and owing to tensions in the Middle East, the overall energy business is uncertain.
The U.S. Energy Information Administration projects the spot average WTI price for 2026 at $88.21 per barrel, higher than $65.40 in 2025. Thus, Phillips 66 (PSX - Free Report) , which generates significant margin from its refining activities, is likely to be hurt by high oil prices. Despite the high input cost, the refining business environment is highly profitable as demand for fuels remained strong, while global fuel inventories stayed relatively tight.
Investors should also know that although a leading refiner, PSX, unlike most of its refining peers, has diversified the business across midstream and chemicals. Along with investing in refining operations, Phillips 66 is allocating a significant amount of capital to midstream.
Midstream business, by its very definition, is stable, generating stable cash flows as the assets are being utilized by shippers for the long term, and is less vulnerable to commodity price volatility. Hence, having a diversified business model, Phillips 66 is insulated from commodity price volatility to a great extent.
DINO & PARR Poised to GainHF Sinclair (DINO - Free Report) and Par Pacific Holdings Inc. (PARR - Free Report) , two other well-known refiners, are also likely to benefit from the ongoing favorable refining business.
On its second-quarter 2026 call, HF Sinclair mentioned that wars in the Middle East and Ukraine have disrupted refining capacities. DINO stated that inventories of fuel in the United States and in its key operating regions are low, especially when the demand for the end products remains healthy, thereby creating opportunities to earn healthy refining margins.
Par Pacific continued to benefit from a strong refining market at the start of the third quarter. The company’s refining index, which is a rough measure of how profitable it is to turn crude oil into products like gasoline and diesel, was still very high in July at $31.34 per barrel, only slightly below the second-quarter average of about $33.
Demand for fuels remained strong, especially on the mainland, while global fuel inventories stayed relatively tight. In simple terms, there was still healthy demand for refined products and limited excess supply, which helped PARR continue earning attractive margins from its refineries.
PSX’s Price Performance, Valuation & EstimatesShares of PSX have gained 103.8% over the past year compared with the 120.9% rise of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, PSX trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 11.95X. This is above the broader industry average of 6.05X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PSX’s 2026 earnings has gone up over the past seven days.
Image Source: Zacks Investment Research
Phillips 66 currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Phillips 66's 2026 and 2027 earnings estimates rose 36.5% and 50.4%, respectively.PSX's adjusted refining earnings reached $3.29B in the first half, while utilization remained high at 96%.Phillips 66 cut net debt to $16.5B and returned $1.67B to shareholders in the first half. Phillips 66 (PSX - Free Report) operates across Refining, Midstream, Chemicals, Marketing and Specialties, and Renewable Fuels, giving the company exposure to multiple parts of the downstream energy value chain. The company’s refining business processes crude oil and other feedstocks into transportation fuels and related products, while Midstream transports, stores and processes crude oil, refined products, natural gas and natural gas liquids.
PSX also markets gasoline, diesel, aviation fuel and lubricants through branded and unbranded channels, including Phillips 66, Conoco, 76 and JET. The downstream commercial organization ties these businesses together by sourcing feedstocks and moving crude oil, fuels, NGLs, chemicals and renewable feedstocks through pipeline, rail, truck and marine networks.
Estimate Revisions Signal a Stronger Earnings OutlookAnalyst earnings expectations for Phillips 66 have increased sharply over the past 60 days. The Zacks Consensus Estimate for 2026 earnings has increased to $29.01 per share from $22.63 per share, while the 2027 estimate has risen to $29.79 per share from $20.60 per share. These revisions represent increases of 28.2% and 44.6%, respectively.
Image Source: Zacks Investment Research
The upward trend reflects greater confidence in PSX’s earnings potential over the next two years. For the refining and marketing sector, such revisions typically imply expectations for a supportive operating backdrop, including favorable refining margins, high utilization, resilient fuel demand and steady marketing performance. The scale of the revisions also suggests that analysts increasingly expect PSX’s recent operating improvement to extend beyond a single quarter.
Factors That Bode Well for PSXEarnings & Cash Flow Accelerate: Phillips 66 delivered a substantial improvement in first-half 2026 results. Net income attributable to PSX increased to $4.05 billion from $1.36 billion a year earlier, while diluted EPS climbed to $10.05 from $3.32. Operating cash flow rose to $5.0 billion from $1.0 billion. This stronger cash generation gives the company greater flexibility to fund growth projects, reduce leverage and return capital to shareholders.
Refining Momentum Remains Strong: Refining was the largest contributor to the first-half earnings recovery. Adjusted refining earnings reached $3.29 billion, up from a $545 million loss a year earlier. In the second quarter, realized refining margin increased to $24.08 per barrel from $10.11 in the first quarter, while crude capacity utilization remained high at 96%. The segment captured 98% of its market share, reflecting better operating performance, yields and commercial execution.
Midstream Adds Stability & Growth: Midstream earnings reached $1.38 billion in the first six months of 2026, supported by higher margins and volumes. Second-quarter NGL fractionation volumes increased to a record 1,020 thousand barrels per day (MBD) from 980 MBD in the first quarter, while NGL pipeline throughput reached 943 MBD. Fractionation capacity exceeds 1 million barrels per day, with average utilization above 100%, strengthening the segment’s contribution to more stable cash flows.
Deleveraging Improves Financial Flexibility: PSX made notable progress on its balance sheet. Total debt fell to $20.6 billion from $27.1 billion at the end of the first quarter, while net debt declined to $16.5 billion from $22.0 billion. The net debt-to-capital ratio improved to 33% from 43%. Lower leverage gives the company more room to balance debt reduction with growth spending and shareholder distributions.
Shareholder Returns Remain Well Supported: During the first six months of 2026, PSX returned $1.67 billion to shareholders through $1.02 billion of dividends and $648 million of share repurchases. Management remains committed to returning more than 50% of operating cash flow, excluding working-capital movements, through dividends and buybacks. Higher cash generation and lower leverage strengthen the company’s capacity to maintain this approach.
Diversification Broadens the Earnings Base: The recovery was not limited to Refining. Adjusted Chemicals earnings reached $489 million, Midstream generated $1.38 billion, Marketing and Specialties delivered $373 million, and Renewable Fuels generated $503 million in the first half. Renewable Fuels moved from a first-quarter loss to second-quarter profitability, underscoring the benefit of PSX’s broader portfolio.
Growth Projects Extend the Runway: PSX continues to invest in future earnings capacity. Dos Picos II reached full production, while the company announced the 300 million cubic feet per day Zeus Gas Plant and a 100 MBD Coastal Bend NGL fractionator. CPChem is also advancing the Golden Triangle Polymers and Ras Laffan Polymers projects, with full operations expected in 2027.
Verdict for PSX StockPhillips 66 is well-positioned to benefit from favorable refining economics, high utilization and broader earnings contributions across Midstream, Chemicals and Renewable Fuels in the near term. At the same time, stronger cash flow and rapid debt reduction improve financial flexibility and support continued shareholder returns. With estimate revisions moving sharply higher and growth projects adding future capacity, this Zacks Rank #1 (Strong Buy) stock has several operating and financial catalysts that are likely to sustain earnings momentum over the coming quarters.
Other Key PicksOther top-ranked stocks in the energy sector include Baker Hughes Company (BKR - Free Report) , Venture Global, Inc. (VG - Free Report) and TechnipFMC plc (FTI - Free Report) . BKR, VG and FTI currently sport a Zacks Rank #1 each. You can see the complete list of today’s Zacks Rank #1 stocks here.
Baker Hughes provides technologies and services across the energy and industrial value chain, supporting onshore and offshore activities spanning drilling, completions, production and decommissioning. Its portfolio also includes gas technologies, LNG solutions, industrial equipment, digital offerings and aftermarket services. The Zacks Consensus Estimate for BKR’s 2026 earnings is pegged at $2.59 per share, suggesting 7.9% year-over-year growth. The company has delivered an average trailing four-quarter earnings surprise of 17.4%.
Venture Global develops and operates LNG export facilities along the U.S. Gulf Coast, supplying low-cost LNG to global markets through long-term sales agreements. The Zacks Consensus Estimate for VG’s 2026 earnings is pegged at $1.70 per share, suggesting 11.8% year-over-year growth. Venture Global currently has a Growth Score of B and a Value Score of A.
TechnipFMC provides integrated technologies, equipment and services for subsea, offshore and surface energy projects, helping oil and gas producers improve project execution, lower development costs and enhance production. The Zacks Consensus Estimate for FTI’s 2026 earnings is pegged at $3.20 per share, suggesting 1.9% year-over-year growth. TechnipFMC currently has a Growth Score of B and a Momentum Score of B.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Phillips 66 (PSX - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Phillips 66 currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for PSX that show why this oil refiner shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For PSX, shares are up 3.45% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 3.45% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 3.72% compares favorably with the industry's 3.3% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Phillips 66 have risen 40.47%, and are up 98.92% in the last year. On the other hand, the S&P 500 has only moved 2.73% and 15.47%, respectively.
Investors should also pay attention to PSX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. PSX is currently averaging 3,197,197 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with PSX.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PSX's consensus estimate, increasing from $21.26 to $29.01 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that PSX is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Phillips 66 on your short list.
Phillips 66 (PSX - Free Report) is currently considered expensive on a relative basis, with the stock trading at an 11.75x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a premium compared with the broader industry average of 5.94x. Such a premium valuation often signals strong market confidence in the company’s prospects. Valero Energy Corporation (VLO - Free Report) and Par Pacific Holdings (PARR - Free Report) , belonging to the same space, are valued at 8.55x and 3.52x, respectively.
Image Source: Zacks Investment Research
However, this elevated price necessitates a thorough assessment of the company’s fundamentals, growth potential and prevailing market conditions to check if it is justified.
Will PSX’s Refining Margins Remain Strong?
On its second-quarter 2026 earnings call, PSX noted that there aren’t enough refineries or products globally right now because much refining capacity is offline and fuel inventories are low. China is also exporting less fuel than usual. This shortage helps keep refining margins, also called crack spreads, high. Management believes these shortages may take longer to resolve than in 2022, which is expected to boost the energy major’s refining profits in the September quarter and in 2027. The broader scenario is also likely to favor other refiners like VLO and PARR.
PSX’s Resilient Business Model & Debt Reduction Focus
Although a leading refiner, PSX, unlike most of its refining peers, has diversified its business across midstream and chemicals. Along with investing in refining operations, Phillips 66 is allocating significant capital to midstream.
Midstream business, by its very definition, is stable since the company generates stable cash flows as the assets are being utilized for the long term and is less vulnerable to commodity price volatility. Hence, having a diversified business model, PSX is insulated from commodity price volatility to a great extent.
Moreover, debt reduction remains on track, with PSX targeting roughly $17 billion of total debt by 2026-end versus almost $21 billion in the second quarter, while net debt is expected to improve from $16.5 billion to less than $16 billion.
Is the Stock Worth Buying?
In the past year, PSX has jumped 99.1%, underperforming the industry’s 115.7% growth. PARR and VLO have surged 138.4% and 148.6%, respectively, over the same time frame.
Image Source: Zacks Investment Research
Although PSX underperformed the industry, the stock remains overvalued, reflecting investors' strong preference for the company, supported by solid fundamentals. Earnings estimates for 2026 have been revised higher over the past seven days.
Image Source: Zacks Investment Research
Hence, investors can bet on the stock, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HOUSTON--(BUSINESS WIRE)--Phillips 66 today announced that Rich Harbison, executive vice president, Refining, has decided to retire, effective Dec. 31, 2026.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.86% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Phillips 66 (PSX - Free Report) Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. As of second-quarter 2026, the company’s Refining segment included 10 refineries in the United States and Europe, with worldwide crude oil capacity of about 2.0 million barrels per day.
PSX is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PSX has a Growth Style Score of A, forecasting year-over-year earnings growth of 336.7% for the current fiscal year.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $6.86 to $28.12 per share. PSX boasts an average earnings surprise of +62.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PSX should be on investors' short list.
Phillips 66 (PSX - Free Report) closed the most recent trading day at $255.31, moving +1.21% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.25%. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq added 0.24%.
Shares of the oil refiner witnessed a gain of 0.09% over the previous month, beating the performance of the Oils-Energy sector with its loss of 0.62%, and the S&P 500's loss of 0.42%.
The investment community will be closely monitoring the performance of Phillips 66 in its forthcoming earnings report. The company is scheduled to release its earnings on October 28, 2026. On that day, Phillips 66 is projected to report earnings of $9.98 per share, which would represent year-over-year growth of 296.03%. Alongside, our most recent consensus estimate is anticipating revenue of $36.91 billion, indicating a 5.53% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $28.12 per share and a revenue of $158.7 billion, representing changes of +336.65% and +16.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 17.86% higher. At present, Phillips 66 boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Phillips 66 is presently trading at a Forward P/E ratio of 8.97. This expresses a premium compared to the average Forward P/E of 8.82 of its industry.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PSX in the coming trading sessions, be sure to utilize Zacks.com.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Houston, Phillips 66 (PSX - Free Report) is in the Oils-Energy sector, and so far this year, shares have seen a price change of 96.49%. The oil refiner is paying out a dividend of $1.27 per share at the moment, with a dividend yield of 2% compared to the Oil and Gas - Refining and Marketing industry's yield of 1.49% and the S&P 500's yield of 1.42%.
Looking at dividend growth, the company's current annualized dividend of $5.08 is up 6.9% from last year. Over the last 5 years, Phillips 66 has increased its dividend 4 times on a year-over-year basis for an average annual increase of 6.85%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Phillips 66's current payout ratio is 34%, meaning it paid out 34% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for PSX for this fiscal year. The Zacks Consensus Estimate for 2026 is $28.28 per share, which represents a year-over-year growth rate of 339.13%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PSX presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).
Key Takeaways Oil prices remain elevated as U.S.-Iran ceasefire talks stay deadlocked and Hormuz uncertainty persists.Recovering regional exports and Saudi Arabia's restored East-West pipeline have tempered some oil price gains.PSX, DINO and E recently strengthened buyback programs, underscoring disciplined capital allocation. Share repurchases are gaining importance across the energy space as companies look to balance shareholder returns with capital discipline amid elevated oil prices and geopolitical uncertainty. Brent recently climbed above $105 per barrel, while WTI approached $95 as concerns over Middle East supply disruptions persisted. Against this backdrop, Phillips 66 (PSX - Free Report) , HF Sinclair (DINO - Free Report) and Eni S.p.A. (E - Free Report) — each carrying Zacks Rank #1 (Strong Buy) — stand out with recently strengthened buyback programs. You can see the complete list of today’s Zacks #1 Rank stocks here.
Why Share Buybacks Matter for Energy InvestorsShare buybacks allow companies to deploy surplus cash toward repurchasing their own stock, reducing the number of shares outstanding and potentially supporting earnings per share over time. Unlike dividends, repurchases can be adjusted as business conditions change, making them particularly useful in the cyclical energy sector. When undertaken at attractive valuations and supported by healthy cash flows, buybacks can enhance per-share value while signaling management’s confidence in the company’s financial position.
This flexibility is especially relevant now. Oil prices remain elevated as the U.S.-Iran ceasefire talks stay deadlocked, prolonging uncertainty surrounding the Strait of Hormuz, although recovering regional exports and Saudi Arabia’s restored East-West pipeline have tempered some price gains. Such an uncertain backdrop makes disciplined capital allocation increasingly important. For investors, companies combining operational strength with sizable repurchase programs may offer an additional avenue for shareholder returns beyond dividends.
3 Stocks Stepping Up Share BuybacksWith stock repurchases gaining traction in the energy space, let’s take a look at some recent capital deployment activities.
Phillips 66: Phillips 66 is a diversified energy company active across refining, midstream, chemicals, marketing, specialties and renewable fuels. Its network connects crude oil, natural gas liquids and other feedstocks with refineries, pipelines, export facilities and end markets. The company also operates a large commercial platform that links North American supply with customers around the world.
Its integrated model is designed to reduce earnings volatility and improve cash flow durability. Phillips 66 continues to invest in midstream expansion, refining reliability, chemicals and renewable fuels, while focusing on core markets and cost control. The company also places strong emphasis on shareholder returns through dividends and share repurchases.
Phillips 66 strengthened its shareholder-return framework when its board approved a $10 billion increase to its share repurchase authorization on July 29, 2026. The move came as the remaining authorization under the existing program was approaching its limit. PSX said the expanded authorization supports long-term shareholder value alongside its dividend, disciplined capital investment and continued debt reduction, highlighting its balanced capital-allocation approach.
HF Sinclair: HF Sinclair is an integrated downstream energy company with businesses in refining, midstream, marketing, renewable fuels and lubricants. Its refining network is supported by pipeline and terminal assets, while marketing operations help connect fuel production with end customers. The company has exposure to renewable diesel and specialty products, giving it a wider mix than a pure refiner.
HF Sinclair is working to simplify its portfolio and sharpen its focus. It plans to separate the Lubricants & Specialties business into an independent company and retire base oil refining assets in Mississauga. The remaining company will focus on refining, midstream, marketing and renewables, with cash returns and disciplined reinvestment as key priorities.
HF Sinclair refreshed its capital-return strategy on Aug. 26, 2026, with a new $1.5 billion share repurchase program. The authorization replaced all existing repurchase programs, under which approximately $11 million remained. DINO may execute repurchases in the open market, through privately negotiated transactions or other permitted methods, with the timing and amount depending on market conditions and other relevant considerations.
Eni: Eni is a global energy company with operations spanning oil and gas production, LNG, power, refining, biofuels and renewable energy. Its upstream business has a broad international footprint, while newer platforms such as Enilive and Plenitude are expanding its presence in lower-carbon fuels, renewables and retail energy. The group is also building LNG and gas projects across several regions.
Eni combines traditional energy assets with transition-focused businesses to diversify cash flow and support long-term growth. It is advancing major developments in Asia, Africa and South America, while continuing to invest in biorefineries, renewable capacity and energy infrastructure. Its strategy also emphasizes disciplined capital spending and shareholder distributions.
Eni stepped up shareholder distributions again in July, expanding its 2026 share buyback plan to €3.4 billion from the previously revised €2.8 billion, a 20% increase. The latest amount is more than double its initial €1.5 billion guidance. Eni attributed the increase to strong execution and the market environment, underscoring its policy of sharing cash-flow upside with its shareholders.
Phillips 66 is using artificial intelligence to predict outages within its refining systems, save on maintenance costs and increase crude processing, said Tandra Perkins, an executive vice president at the US refiner.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Phillips 66 (PSX - Free Report) Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. As of second-quarter 2026, the company’s Refining segment included 10 refineries in the United States and Europe, with worldwide crude oil capacity of about 2.0 million barrels per day.
PSX is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Oils-Energy stock. PSX has a Momentum Style Score of A, and shares are up 5.9% over the past four weeks.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $7.02 to $28.28 per share. PSX also boasts an average earnings surprise of +62.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PSX should be on investors' short list.
Shares of Phillips 66 (NYSE:PSX – Get Free Report) reached a new 52-week high on Monday . The company traded as high as $277.12 and last traded at $275.1460, with a volume of 10170068 shares. The stock had previously closed at $273.13.
Analysts Set New Price Targets A number of research firms have commented on PSX. Guggenheim raised shares of Phillips 66 to an “outperform” rating in a research report on Wednesday, May 27th. Piper Sandler increased their price target on shares of Phillips 66 from $209.00 to $264.00 and gave the company a “neutral” rating in a report on Thursday, September 3rd. UBS Group boosted their price objective on Phillips 66 from $235.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, September 8th. BMO Capital Markets boosted their price target on Phillips 66 from $260.00 to $310.00 and gave the company an “outperform” rating in a research note on Thursday, September 17th. Finally, Weiss Ratings raised Phillips 66 from a “hold (c)” rating to a “buy (b)” rating in a report on Wednesday, August 12th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $241.56.
Read Our Latest Analysis on PSX
Phillips 66 Price Performance The company’s 50-day moving average is $233.44 and its 200-day moving average is $194.99. The firm has a market cap of $102.51 billion, a price-to-earnings ratio of 14.64 and a beta of 0.71. The company has a current ratio of 1.32, a quick ratio of 1.00 and a debt-to-equity ratio of 0.57. Phillips 66 (NYSE:PSX – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $9.41 EPS for the quarter, beating the consensus estimate of $7.50 by $1.91. Phillips 66 had a net margin of 4.54% and a return on equity of 19.93%. The business had revenue of $52.04 billion during the quarter, compared to the consensus estimate of $43.60 billion. During the same period in the previous year, the business earned $2.38 earnings per share. Equities research analysts predict that Phillips 66 will post 28.28 earnings per share for the current year.
Phillips 66 Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th were paid a dividend of $1.27 per share. The ex-dividend date of this dividend was Tuesday, August 18th. This represents a $5.08 annualized dividend and a yield of 2.0%. Phillips 66’s payout ratio is presently 28.95%.
Phillips 66 declared that its Board of Directors has approved a stock buyback program on Friday, July 31st that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the oil and gas company to reacquire up to 11.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.
Insider Activity at Phillips 66 In related news, CFO Kevin Mitchell sold 11,021 shares of the company’s stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $190.03, for a total transaction of $2,094,320.63. Following the completion of the transaction, the chief financial officer directly owned 97,376 shares in the company, valued at $18,504,361.28. This represents a 10.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Richard Harbison sold 52,100 shares of the business’s stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $223.76, for a total transaction of $11,657,896.00. Following the sale, the executive vice president directly owned 39,094 shares in the company, valued at approximately $8,747,673.44. The trade was a 57.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 123,907 shares of company stock valued at $27,973,214. Company insiders own 0.40% of the company’s stock.
Institutional Trading of Phillips 66 Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Phillips 66 during the 2nd quarter worth approximately $5,766,779,000. State Street Corp boosted its stake in shares of Phillips 66 by 1.1% in the 2nd quarter. State Street Corp now owns 26,044,694 shares of the oil and gas company’s stock valued at $4,402,856,000 after purchasing an additional 271,841 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Phillips 66 by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 10,413,824 shares of the oil and gas company’s stock valued at $1,338,596,000 after purchasing an additional 45,340 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in Phillips 66 in the second quarter worth $1,093,206,000. Finally, Norges Bank bought a new stake in Phillips 66 during the 4th quarter valued at $640,206,000. 76.93% of the stock is currently owned by institutional investors.
About Phillips 66 (Get Free Report)
Phillips 66 (NYSE: PSX) is an energy company that operates across the midstream, chemicals, refining and marketing sectors. Headquartered in Houston, Texas, the company was established in 2012 when ConocoPhillips separated its downstream businesses into an independent company.
The company’s midstream operations include transportation, processing, storage and other infrastructure for crude oil, natural gas and natural gas liquids. Phillips 66 also owns and operates refineries that process crude oil into transportation fuels, lubricants, specialty products and other refined petroleum products.
Phillips 66 markets gasoline, diesel and other fuels under the Phillips 66, Conoco and 76 brands, primarily in the United States.
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Phillips 66 (PSX - Free Report) ended the recent trading session at $261.75, demonstrating a -4.17% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.49%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 2.26%.
The oil refiner's shares have seen an increase of 12.46% over the last month, surpassing the Oils-Energy sector's gain of 0.51% and the S&P 500's gain of 0.1%.
The investment community will be paying close attention to the earnings performance of Phillips 66 in its upcoming release. The company is slated to reveal its earnings on October 28, 2026. On that day, Phillips 66 is projected to report earnings of $10.21 per share, which would represent year-over-year growth of 305.16%. Simultaneously, our latest consensus estimate expects the revenue to be $36.91 billion, showing a 5.53% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $28.28 per share and a revenue of $160.47 billion, signifying shifts of +339.13% and +17.51%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Phillips 66. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 18.55% increase. Right now, Phillips 66 possesses a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Phillips 66 is holding a Forward P/E ratio of 9.66. For comparison, its industry has an average Forward P/E of 8.92, which means Phillips 66 is trading at a premium to the group.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Diesel margins just ran five times their normal range as Russian barrels vanished and Gulf throughput cratered, sending Phillips 66 on a historic run. But the question rattling analysts is whether the refining windfall reflects a new reality or a…
Phillips 66 (NYSE:PSX | PSX Price Prediction) closed Friday at $272.99, up 116.03% year-to-date, after a second quarter that generated $52.04 billion in revenue and $9.41 in adjusted EPS against a $8.0855 consensus.
Refining drove the quarter: worldwide realized margins jumped to $24.08 per barrel from $10.11 per barrel the prior quarter. This was the strongest quarterly result since 2022.
The key question is whether investors are paying for a temporary war premium that will fade or a permanent tightening that will persist. Diesel cracks recently ran roughly five times the typical teens-to-low-twenties range because Russian export flows collapsed, Persian Gulf shipments fell, and Ukrainian drone strikes hobbled Russian throughput. None of that is a run rate.
Why Diesel Margins Detonated CEO Mark Lashier framed the setup on the August 5 call as a supply shock: “You’ve had significant refining capacity offline and stocks are low. And so we see it taking a lot longer for that situation to normalize than what we saw in 2022.”
Brian Mandell put numbers on it: “We have 7 million barrels a day of refineries down in Asia and the Mideast and another 1.4 million barrels down in Russia.”
WTI has since climbed to $107.02, up 27.4% in a month, which lifts feedstock costs even as product cracks stay hot.
Marathon Petroleum (NYSE:MPC) posted a Refining and Marketing margin of $36.33 per barrel, versus $17.58 a year earlier, with adjusted EPS of $17.73.
Valero Energy (NYSE:VLO) reported a blended refining margin of $23.62 per barrel and a stunning $43.52 per barrel ULS diesel margin on the Gulf Coast.
Phillips 66 sits between the two on realized capture, but its Central Corridor at $29.56/bbl and West Coast at $29.65/bbl show the same regional diesel squeeze.
War Premium or Structural Tightness There have been seven US refinery closures since 2019, and PSX itself ceased fuel production at its Los Angeles refinery in 2025. That capacity is not coming back.
The geopolitical layer can normalize. If Russian barrels return and Middle East throughput recovers, the diesel dislocation compresses fast, even with a leaner US refining base.
The bull case rests on persistence. Rich Harbison is targeting $5.50 per barrel in refining operating costs, PSX returned $887 million in Q2, and management expects net debt below $16 billion by year-end.
The bear case is cyclicality. WTI near $107 pressures feedstock, Q1 already showed $839 million in mark-to-market derivative losses when prices swung, and Bayway labor negotiations point to cost pressure arriving as margins peak.
The deciding variable is how long Russian and Persian Gulf barrels stay offline. Structural closures set the floor, but the current margin is a spike.
Contact [email protected] for any questions or corrections.
Key Takeaways MPC combines refining strength with high-return projects and expanding MPLX operations. PSX offers diversified exposure across refining, midstream, chemicals and renewable fuels. MPC trades at a lower valuation and has stronger projected 2026 EPS growth than PSX. Marathon Petroleum Corporation (MPC - Free Report) and Phillips 66 (PSX - Free Report) are two major U.S. downstream energy companies with broad operations across refining and related businesses. MPC combines its large refining and marketing network with midstream operations through MPLX and renewable diesel, giving it exposure to multiple parts of the energy value chain. Phillips 66 has a more diversified portfolio spanning Refining, Midstream, Chemicals, Marketing and Specialties, and Renewable Fuels.
Both companies are benefiting from a constructive refining environment while pursuing operational improvements and disciplined capital allocation. MPC is also investing in projects aimed at improving refinery yields, while Phillips 66 continues to expand its integrated midstream network and reduce debt. With both stocks offering different strengths, a closer comparison can help determine how they stack up on fundamentals, growth prospects and valuation.
The Case for Marathon Petroleum StockMarathon Petroleum’s key strength is its large, integrated refining and logistics platform, which gives the company flexibility to source crude economically, optimize feedstocks and direct refined products toward attractive markets. In the second quarter of 2026, its Refining & Marketing business operated at 94% crude capacity utilization with a throughput of 2.9 million barrels per day, highlighting the scale of the system. Strong commercial and operational execution, along with higher crack spreads, supported the segment’s performance.
MPC also benefits from its focus on improving the profitability and competitiveness of its existing refineries rather than relying only on large expansion projects. The company is directing capital toward high-return investments at Galveston Bay, Robinson, El Paso and Garyville. The recently completed Robinson project added about 10,000 barrels per day of incremental jet-fuel capability, while the El Paso project enhanced specialty gasoline production. This approach should allow MPC to capture stronger margins while responding more effectively to changing product demand.
Further opportunities are scheduled through the end of 2027. The Galveston Bay project is designed to add a 90,000-barrel-per-day hydrotreater for higher-value ultra-low-sulfur diesel. At Garyville, planned investments are expected to increase crude throughput by 30,000 barrels per day and provide another 10,000 barrels per day of export-premium gasoline capacity. These projects could improve product yields, feedstock flexibility and access to domestic and export markets.
MPLX provides MPC with another important growth avenue outside refining. MPC is advancing natural gas and NGL infrastructure, and MPLX raised its 2026 growth-capital outlook to $2.9 billion as it accelerates Gulf Coast fractionation and related projects. Most organic growth capital is aimed at natural gas and NGL opportunities, particularly in the Permian and Marcellus. This expansion can strengthen MPC’s integrated value chain and increase its exposure to relatively durable midstream cash flows while supporting higher distributions from MPLX.
The Case for Phillips 66 StockPhillips 66 has built a differentiated business model around its diversified downstream structure. Its portfolio spans Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels, reducing its dependence on any single business line. The company also benefits from an integrated North American infrastructure network. Management says Midstream and Marketing provide more dependable cash flows, while Refining, Chemicals and Renewables offer additional commodity-driven upside, creating several earnings engines across the portfolio.
Operational improvement is another important strength. Phillips 66 has increased refinery clean-product yields, improved its cost structure and expanded nameplate capacity. The company’s midstream system has also grown substantially, with fractionation capacity exceeding 1 million barrels per day and record LPG export volumes. At the same time, its renewable operations include one of the world’s largest renewable diesel facilities, giving PSX additional exposure beyond conventional refining.
Midstream offers a sizable pipeline of future opportunities. Dos Picos II has reached full production, while Phillips 66 plans the 300-MMcfd Zeus gas plant and a 100,000-barrel-per-day Coastal Bend NGL fractionator. Meanwhile, the Western Gateway project would create roughly 1,300 miles of refined-product infrastructure with an initial design capacity of 230,000 barrels per day. The project is intended to link Central Corridor and Gulf Coast refining assets with western marketing markets and is targeted for completion in 2029, subject to approvals.
Chemicals provide another potential source of growth. Chevron Phillips Chemical is progressing the Golden Triangle Polymers project in Texas, which is expected to reach full operations in 2027. Combined with further midstream investment and continued refinery optimization, these projects could broaden PSX’s earnings base and strengthen the contribution from businesses outside traditional refining over the coming years.
Price Performance ComparisonIn the past six months, shares of MPC and PSX have surged 82.7% and 54.5%, respectively.
Image Source: Zacks Investment Research
Valuation ComparisonFrom a valuation perspective — in terms of forward price-to-earnings ratio — Marathon Petroleum is trading at a discount of 7.51X compared with Phillips 66’s 9.62X.
Image Source: Zacks Investment Research
EPS EstimatesAccording to the Zacks Consensus Estimate, MPC’s earnings are set to rise 452.8% year over year in 2026.
Image Source: Zacks Investment Research
The same for PSX’s 2026 EPS indicates a year-over-year increase of 339.1%.
Image Source: Zacks Investment Research
ConclusionMarathon Petroleum and Phillips 66 both offer solid exposure to a favorable refining backdrop. PSX benefits from a diversified portfolio spanning refining, midstream, chemicals, marketing and renewable fuels, along with several projects that could broaden its earnings base, justifying its Zacks Rank #1 (Strong Buy).
However, MPC appears better positioned overall, supported by its integrated refining and logistics platform, refinery-upgrade projects and expanding MPLX operations. MPC has also gained 82.7% over the past six months compared with PSX’s 54.5% and trades at a lower forward P/E of 7.51X compared with 9.62X. Its expected 2026 EPS growth of 452.8% also exceeds PSX’s 339.1%, justifying its Zacks Rank #1. While both stocks currently carry the same rank, MPC emerges as the clear winner in this comparison.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Nykredit A S bought a new position in Phillips 66 (NYSE:PSX – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 171,043 shares of the oil and gas company’s stock, valued at approximately $28,915,000.
Several other institutional investors also recently bought and sold shares of PSX. BlackRock Inc. acquired a new stake in shares of Phillips 66 during the 2nd quarter worth approximately $5,766,779,000. Geode Capital Management LLC boosted its stake in shares of Phillips 66 by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 10,413,824 shares of the oil and gas company’s stock worth $1,338,596,000 after acquiring an additional 45,340 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in Phillips 66 in the 2nd quarter valued at about $1,093,206,000. Norges Bank purchased a new position in Phillips 66 during the fourth quarter worth about $640,206,000. Finally, Amundi boosted its stake in Phillips 66 by 62.0% during the first quarter. Amundi now owns 3,667,451 shares of the oil and gas company’s stock worth $668,137,000 after buying an additional 1,403,493 shares during the period. 76.93% of the stock is currently owned by hedge funds and other institutional investors.
Insiders Place Their Bets In related news, EVP Brian Mandell sold 30,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $215.00, for a total value of $6,450,000.00. Following the sale, the executive vice president directly owned 61,595 shares of the company’s stock, valued at approximately $13,242,925. This trade represents a 32.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Kevin J. Mitchell sold 11,021 shares of the stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $190.03, for a total transaction of $2,094,320.63. Following the transaction, the chief financial officer directly owned 97,376 shares in the company, valued at approximately $18,504,361.28. This represents a 10.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 123,907 shares of company stock valued at $27,973,214. Insiders own 0.40% of the company’s stock.
Key Phillips 66 News Here are the key news stories impacting Phillips 66 this week: Positive Sentiment: A record diesel crack spread—the margin refiners earn from converting crude oil into diesel—is driving broad strength across the refining sector. Phillips 66, Valero, Marathon Petroleum and HF Sinclair have each posted six straight weeks of gains, providing a significant near-term earnings catalyst for PSX. Diesel Squeeze Nobody Hedged: 4 Refiners Just Logged Their 6th Straight Week of Gains Positive Sentiment: Analysts point to resilient refining margins and relatively stable midstream cash flows, which may cushion Phillips 66 from commodity-price volatility. The company also recently reported quarterly EPS well above expectations, reinforcing confidence in its earnings power. Phillips 66: Resilient Refining Meets Midstream Stability Positive Sentiment: PSX remains a relative-strength leader amid rising interest rates and volatile markets. Its previously announced $10 billion share-repurchase authorization and quarterly dividend may provide additional shareholder support. Neutral Sentiment: Phillips 66 will discuss third-quarter 2026 results during a webcast on October 28. The event is a future catalyst, with investors likely focused on whether elevated diesel margins translated into stronger quarterly results. Phillips 66 to announce third-quarter financial results Negative Sentiment: Phillips 66 is trading well above the average analyst price target, raising the risk of a pullback if refining margins weaken or upcoming results disappoint. Priced for a Pullback or More Gains? These 3 Stocks Are Testing the Limits Negative Sentiment: Executive Vice President Brian Mandell sold 23,400 shares worth approximately $6.2 million, reducing his direct holdings by 27.5%. The sale may modestly weigh on sentiment, although it does not by itself indicate deteriorating fundamentals. SEC insider ownership filing Negative Sentiment: Oil-market backwardation and concerns about demand destruction or rising non-OPEC supply could pressure future oil prices and energy valuations. These risks are partly offset by the fact that lower crude costs can benefit refiners. Phillips 66 Stock Performance NYSE PSX opened at $272.79 on Friday. The stock has a market capitalization of $108.85 billion, a price-to-earnings ratio of 15.54 and a beta of 0.71. The business’s 50 day moving average is $231.07 and its two-hundred day moving average is $193.39. Phillips 66 has a 12-month low of $126.74 and a 12-month high of $277.12. The company has a current ratio of 1.32, a quick ratio of 1.00 and a debt-to-equity ratio of 0.57.
Phillips 66 (NYSE:PSX – Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 EPS for the quarter, topping the consensus estimate of $7.50 by $1.91. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%.The business had revenue of $52.04 billion for the quarter, compared to analyst estimates of $43.60 billion. During the same quarter in the previous year, the company earned $2.38 EPS. Research analysts expect that Phillips 66 will post 28.28 EPS for the current year.
Phillips 66 declared that its board has approved a stock buyback plan on Friday, July 31st that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the oil and gas company to buy up to 11.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.
Phillips 66 Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th were paid a $1.27 dividend. This represents a $5.08 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Tuesday, August 18th. Phillips 66’s payout ratio is presently 28.95%.
Wall Street Analyst Weigh In A number of equities research analysts have recently issued reports on PSX shares. TD Cowen boosted their price target on shares of Phillips 66 from $240.00 to $255.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Morgan Stanley increased their target price on Phillips 66 from $196.00 to $284.00 and gave the stock an “overweight” rating in a research note on Monday. Guggenheim upgraded Phillips 66 to an “outperform” rating in a report on Wednesday, May 27th. Citigroup reiterated a “neutral” rating on shares of Phillips 66 in a research note on Thursday, August 6th. Finally, Mizuho raised shares of Phillips 66 from a “neutral” rating to an “outperform” rating and increased their price target for the stock from $170.00 to $212.00 in a research report on Wednesday, May 27th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Phillips 66 has a consensus rating of “Moderate Buy” and an average target price of $241.56.
Check Out Our Latest Report on Phillips 66
Phillips 66 Profile (Free Report)
Phillips 66 (NYSE: PSX) is an energy company that operates across the midstream, chemicals, refining and marketing sectors. Headquartered in Houston, Texas, the company was established in 2012 when ConocoPhillips separated its downstream businesses into an independent company.
The company’s midstream operations include transportation, processing, storage and other infrastructure for crude oil, natural gas and natural gas liquids. Phillips 66 also owns and operates refineries that process crude oil into transportation fuels, lubricants, specialty products and other refined petroleum products.
Phillips 66 markets gasoline, diesel and other fuels under the Phillips 66, Conoco and 76 brands, primarily in the United States.
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Key Takeaways Phillips 66 faces high crude costs, but strong fuel demand and tight inventories support refining margins.PSX's midstream exposure adds stable cash flows and reduces vulnerability to commodity price volatility.PSX's shares rose 101.5% in the past year, while 2026 earnings estimates were revised higher recently. With West Texas Intermediate (WTI) oil prices currently hovering around $100 per barrel, according to Oilprice.com, and owing to the conflicts in the Middle East, the overall energy business is uncertain.
The U.S. Energy Information Administration (“EIA”) projects the spot average West Texas Intermediate price for 2026 at $84.65 per barrel, higher than $65.40 in 2025. Thus, Phillips 66 (PSX - Free Report) , which generates significant margin from its refining activities, is likely to be hurt by high oil prices. Despite the high input cost, the refining business environment is highly profitable as demand for fuels remained strong, while global fuel inventories stayed relatively tight.
Investors should also know that although a leading refiner, PSX, unlike most of its refining peers, has diversified its business across midstream and chemicals. Along with investing in refining operations, Phillips 66 is allocating a significant amount of capital to midstream.
Midstream business, by its very definition, is stable since it generates stable cash flows as the assets are being utilized by shippers for the long term, and is less vulnerable to commodity price volatility. Hence, having a diversified business model, Phillips 66 is insulated from commodity price volatility to a great extent.
DINO & PARR Poised to GainHF Sinclair (DINO - Free Report) and Par Pacific Holdings Inc. (PARR - Free Report) , two other well-known refiners, are also likely to benefit from the ongoing favorable refining business.
On its second-quarter 2026 call,HF Sinclair mentioned that wars in the Middle East and Ukraine have disrupted refining capacities. DINO stated that inventories of fuel in the United States and in its key operating regions are low, especially when the demand for the end products remains healthy, thereby creating opportunities to earn healthy refining margins.
Par Pacific continued to benefit from a strong refining market at the start of the third quarter. Its refining index, which is a rough measure of how profitable it is to turn crude oil into products like gasoline and diesel, was still very high in July at $31.34 per barrel, only slightly below the second-quarter average of about $33.
Demand for fuels remained strong, especially on the mainland, while global fuel inventories stayed relatively tight. In simple terms, there was still healthy demand for refined products and limited excess supply, which helped PARR continue earning attractive margins from its refineries.
PSX’s Price Performance, Valuation & EstimatesShares of PSX have gained 101.5% over the past year compared with the 118.8% rise of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, PSX trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 11.75X. This is above the broader industry average of 5.94X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PSX’s 2026 earnings has gone up over the past seven days.
Image Source: Zacks Investment Research
Phillips 66 currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HOUSTON--(BUSINESS WIRE)--Phillips 66 executive management will host a webcast at noon ET on Oct. 28, 2026, to discuss the company's third-quarter 2026 financial results.
Phillips 66 (PSX - Free Report) closed the most recent trading day at $264.34, moving +2.83% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
Prior to today's trading, shares of the oil refiner had gained 6.86% outpaced the Oils-Energy sector's gain of 2% and the S&P 500's loss of 1.99%.
Market participants will be closely following the financial results of Phillips 66 in its upcoming release. The company is forecasted to report an EPS of $8.73, showcasing a 246.43% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $35.54 billion, reflecting a 1.62% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $24.47 per share and a revenue of $156.82 billion, signifying shifts of +279.97% and +14.84%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Phillips 66. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Currently, Phillips 66 is carrying a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 10.51 right now. This valuation marks a premium compared to its industry average Forward P/E of 9.13.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 19, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Phillips 66 (PSX - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Phillips 66 currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for PSX that show why this oil refiner shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For PSX, shares are up 4.54% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 2.89% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 15.6% compares favorably with the industry's 9.56% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Phillips 66 have increased 56% over the past quarter, and have gained 98.43% in the last year. On the other hand, the S&P 500 has only moved 3.69% and 18.46%, respectively.
Investors should also pay attention to PSX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. PSX is currently averaging 2,586,435 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with PSX.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PSX's consensus estimate, increasing from $18.34 to $24.45 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that PSX is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Phillips 66 on your short list.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Phillips 66 (PSX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Phillips 66 currently has an average brokerage recommendation (ABR) of 1.93, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 21 brokerage firms. An ABR of 1.93 approximates between Strong Buy and Buy.
Of the 21 recommendations that derive the current ABR, 11 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 52.4% and 9.5% of all recommendations.
Brokerage Recommendation Trends for PSX
Check price target & stock forecast for Phillips 66 here>>>
The ABR suggests buying Phillips 66, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is PSX Worth Investing In?Looking at the earnings estimate revisions for Phillips 66, the Zacks Consensus Estimate for the current year has increased 0% over the past month to $24.45.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Phillips 66. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Phillips 66 may serve as a useful guide for investors.
Válka mezi Spojenými státy, Izraelem a Íránem má vedle geopolitických dopadů a razantního zvýšení cen energetických komodit také významný (pozitivní) efekt na investiční portfolio amerického prezidenta Donalda Trumpa. Analýza CNBC, jež zkoumala veřejně dostupná finanční přiznání a firemní reporty, naznačuje, že hodnota Trumpových největších investic do ropného a plynárenského sektoru během prvních šesti měsíců konfliktu výrazně vzrostla.
Podle výpočtů se tržní hodnota devíti největších energetických pozic v Trumpově portfoliu mezi 27. únorem a 31. srpnem zvýšila přibližně o 1,5 až 4,4 milionu dolarů. Prezident v té době držel podíly ve společnostech Chevron, Exxon Mobil, ConocoPhillips, Occidental Petroleum, Marathon Petroleum, Phillips 66, Valero Energy, Kinder Morgan a Williams Companies.
Trumpovy účty uváděly nákupy a nejméně 23 prodejů, jež se týkaly zmíněných devíti společností, do 29. června, což je nejnovější datum, kdy Trump zveřejnil jakékoliv transakce. Jelikož ovšem podání neukazují přesné počty akcií, realizační ceny ani to, které akcie byly prodány, tak přesný rozsah zisků nelze určit, upozorňuje server CNBC.
Bílý dům jakékoliv spekulace o možném střetu zájmů odmítá. Podle jeho vyjádření nemá prezident ani členové jeho rodiny možnost ovlivňovat investiční rozhodnutí týkající se jejich portfolia. Veškeré transakce mají být prováděny nezávislými správci aktiv bez zásahů klienta.
To ale podle kritiků nestačí. „Když prezident dokáže pohnout trhem prostřednictvím oficiálních rozhodnutí a osobně z toho těžit, tak veřejnost zůstává v nejistotě, kde končí národní politika a kde začíná soukromý finanční zájem," řekl CNBC Donald Sherman, prezident a generální ředitel organizace Citizens for Responsibility and Ethics in Washington, liberálně orientované organizace pro vládní etiku.
Navzdory Trumpovým výrokům, že jeho účty mají externí manažery, odborníci na etiku tvrdí, že outsourcing denního obchodování neodstraní elementární střet zájmů. „Diskreční účet je jen zástěrka, nikoliv slepý trust," řekl Scott Greytak, zástupce výkonného ředitele Transparency International U.S., nestranné, neziskové organizace bojující proti korupci.
„Někdo jiný možná provádí obchody, ale (Trump) stále ví, že je silně investováno do energií. Trump pravděpodobně ví, kde má uložené peníze a vidí růst, když kroky jeho administrativy posunou (energetické) akcie nahoru,“ dodal Greytak.
Načasované transakce
Akcie energetického sektoru reagovaly na jednotlivé fáze konfliktu velmi citlivě. Prudké růsty cen ropy střídaly výrazné poklesy pokaždé, když se objevily náznaky eskalace nebo naopak možnost dosažení mírové dohody.
První obchodní den po zahájení společné americko-izraelské operace proti Íránu (2. března) provedly Trumpovy účty podle zveřejněných záznamů nákupy akcií osmi hlavních ropných a plynárenských společností, včetně akcií Exxonu v hodnotě mezi 100 001 a 250 000 USD. Tato společnost přitom představovala jednu z největších prezidentových energetických investic už tehdy. Akcie Exxonu následně během války výrazně posílily.
Tři týdny po nákupech z 2. března, tedy 23. března před otevřením trhu Trump odložil hrozby útoků na íránskou energetickou infrastrukturu. Cena ropy Brent klesla díky vyhlídce na deeskalaci až o 11 procent. V ten den Trumpovy účty uváděly 16 nákupů akcií v oblasti ropného a plynárenského průmyslu a žádné prodeje, v celkové hodnotě přibližně 163 000 až 570 000 dolarů.
„Trumpova práce na dosažení příměří přímo ovlivnila investiční rozhodnutí, která jeho účty prosazovaly a která prezidentovi přinášela prospěch,“ řekl Greytak CNBC.
Pozornost vyvolaly také jiné „šikovně“ načasované transakce. Například začátkem dubna jeden z investičních účtů prodal balík akcií Exxonu v hodnotě až jednoho milionu dolarů. O několik hodin později prezident oznámil dvoutýdenní příměří s Íránem, po němž akcie Exxonu oslabily o více než šest procent.
Na Trumpovy obchody upozorňují také demokraté, kteří ve své srpnové zprávě uvedli, že prezidentovo portfolio zaměřené na ropu a plyn nabobtnalo o desítky milionů dolarů. „Donald Trump držel na konci roku 2025 miliony akcií ropných a plynárenských společností. Dnes mají tyto akcie hodnotu až o 15,5 milionu dolarů vyšší. Co se stalo? Letos zahájil válku s Íránem a vystřelil akcie ropných společností vzhůru,“ napsala na sociální síti X senátorka Elizabeth Warrenová, demokratka z Massachusetts.
Rekordní zisky firem
Devět hlavních energetických společností zastoupených v Trumpově portfoliu vykázalo za letošní druhé čtvrtletí souhrnný čistý zisk ve výši téměř 48 miliard dolarů. O rok dříve přitom vydělaly přibližně „jen“ 16 miliard dolarů. Výsledky táhly vzhůru především vyšší ceny ropy a mimořádně silné rafinerské marže.
Největší podíl na ziscích připadl dvojici Exxon Mobil a Chevron. Výrazně profitovaly ale i rafinerské společnosti Marathon Petroleum, Phillips 66 a Valero Energy.
Manažeři energetických firem navíc investorům signalizovali, že napjatá situace na trhu nemusí rychle skončit ani v případě politického urovnání konfliktu. Podle nich zůstává globální rafinerská kapacita vzhledem k poptávce velmi omezená, což vytváří tlak na udržení vysokých cen pohonných hmot.
To je zároveň jeden z důvodů rostoucí nespokojenosti amerických domácností. Benzin v průběhu války výrazně zdražil, přičemž průměrná národní cena za galon se vyšplhala nad čtyři dolary a o víkendu předcházejícím Svátku práce (letos 7. září) byla podle dat organizace AAA dokonce nejvyšší v historii.
Náklady na dopravu se tak pochopitelně staly jedním z nejcitlivějších ekonomických témat před listopadovými volbami. Podle průzkumu agentur Reuters a Ipsos ze začátku srpna představují životní náklady nejdůležitější volební téma pro 48 procent Američanů. Hned 70 procent respondentů přitom vyjádřilo nespokojenost s tím, jak administrativa zvládá otázku cenové dostupnosti.
Shares of Phillips 66 (PSX - Free Report) have been strong performers lately, with the stock up 15.5% over the past month. The stock hit a new 52-week high of $261 in the previous session. Phillips 66 has gained 100.8% since the start of the year compared to the 34.3% gain for the Zacks Oils-Energy sector and the 126.8% return for the Zacks Oil and Gas - Refining and Marketing industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 5, 2026, Phillips 66 reported EPS of $9.41 versus consensus estimate of $7.68.
For the current fiscal year, Phillips 66 is expected to post earnings of $24.07 per share on $156.28 in revenues. This represents a 273.76% change in EPS on a 14.44% change in revenues. For the next fiscal year, the company is expected to earn $22.12 per share on $146.92 in revenues. This represents a year-over-year change of -8.08% and -5.99%, respectively.
Valuation MetricsThough Phillips 66 has recently hit a 52-week high, what is next for Phillips 66? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Phillips 66 has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 10.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.3X. On a trailing cash flow basis, the stock currently trades at 17.6X versus its peer group's average of 11.4X. Additionally, the stock has a PEG ratio of 0.19. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Phillips 66 currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Phillips 66 passes the test. Thus, it seems as though Phillips 66 shares could have potential in the weeks and months to come.
How Does PSX Stack Up to the Competition?Shares of PSX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PBF Energy Inc. (PBF - Free Report) . PBF has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. PBF Energy Inc. beat our consensus estimate by 53.58%, and for the current fiscal year, PBF is expected to post earnings of $15.74 per share on revenue of $36.6 billion.
Shares of PBF Energy Inc. have gained 10.7% over the past month, and currently trade at a forward P/E of 4.88X and a P/CF of 47.7X.
The Oil and Gas - Refining and Marketing industry is in the top 4% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PSX and PBF, even beyond their own solid fundamental situation.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Phillips 66 (PSX - Free Report) : This diversified and integrated energy company, has seen the Zacks Consensus Estimate for its current year earnings increasing 30.9% over the last 60 days.
Heritage Insurance (HRTG - Free Report) : This property and casualty insurance holding company which provides personal residential insurance for single-family homeowners and condominium owners, has seen the Zacks Consensus Estimate for its current year earnings increasing 27% over the last 60 days.
Tenet Healthcare (THC - Free Report) : This investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida, has seen the Zacks Consensus Estimate for its current year earnings increasing 19.5% over the last 60 day.
Constellium (CSTM - Free Report) : This company, which develops innovative, value-added aluminium products for aerospace, automotive and packaging markets and applications, has seen the Zacks Consensus Estimate for its current year earnings increasing 10.8% over the last 60 days.
Bloomin' Brands (BLMN - Free Report) : This casual dining restaurant company, has seen the Zacks Consensus Estimate for its current year earnings increasing 10.1% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Phillips 66 (PSX - Free Report) Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. As one of the world's leading refiners, Phillips 66 operates 13 refineries, primarily in the United States, with a total refining capacity of about 2.2 million barrels per day.
PSX is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Oils-Energy stock. PSX has a Momentum Style Score of A, and shares are up 25.1% over the past four weeks.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $5.68 to $24.07 per share. PSX boasts an average earnings surprise of +62.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PSX should be on investors' short list.
Despite best efforts of the Trump administration to tease down gas prices amid the ongoing Iran war, the price at the pump has remained stubbornly elevated. While this may hurt investors as they drive their cars, it does present an opportunity. Rather than just buying oil producers, thoughtful investors may seek out stronger opportunities among refiners, fuel distributors, and even convenience store and gas station companies.
Companies like Phillips 66 NYSE: PSX, HF Sinclair NYSE: DINO, and CrossAmerica Partners LP NYSE: CAPL stand to profit from higher margins and strong fuel demand. They each provide access to a different niche with a unique link to gasoline prices and other factors as well, helping to diversify in case of turbulence in another corner of the market.
Get Phillips 66 alerts:
Phillips 66 Is a Diversified Refiner That Stands ApartRefining is a major earnings driver for oil and gas companies, particularly in periods of elevated fuel prices. Phillips 66 has a core refining business that is thriving—it helped to drive an $8.5-billion revenue beat and a major earnings beat in Q2 2026—but it also benefits from midstream assets, a chemicals business, export infrastructure, and much more.
Phillips 66 Today
$255.13 +0.04 (+0.02%)
As of 09/4/2026 03:58 PM Eastern
$126.74▼
$260.681.99%
14.54
$218.94
This can enable Phillips to smooth out its results amid industry turbulence, even as it continues to benefit from expanding gasoline or diesel margins.
Crack spreads across the refining industry are lingering above historical averages thanks to supply disruptions related to the Iran war and other factors. This means that Phillips and other refiners can generate better margins on each barrel they process, leading to billions in quarterly profits and helping refiners buy back shares in large quantities.
With its Gulf Coast footprint, Phillips benefits from both domestic and export markets. This means the company may continue to benefit if gasoline prices stay elevated as a result of continued constrained refining capacity. Analysts see this, as two-thirds have called PSX shares a Buy, even as they caution that the share price may fall somewhat in the near-term.
HF Sinclair Brings Leverage to the CalculationHF Sinclair relies more heavily on refining operations, meaning profits may grow rapidly when crack spreads widen. This also makes the company particularly sensitive to refining margins.
HF Sinclair Today
$105.62 +0.21 (+0.20%)
As of 09/4/2026 03:58 PM Eastern
$45.71▼
$108.251.99%
10.08
$83.42
While this can be a positive under the right conditions, it also means HF Sinclair is more susceptible to refining margin pressure, resulting in steep earnings declines.
Recently, this has worked out very well for HF Sinclair, as the company has generated 53% year over year (YOY) revenue gains in the latest quarter alone, made all the better by adjusted net income that roughly tripled over the same period.
Higher throughput and operational execution also helped to drive these results, and the company rounded out its performance with the help of renewables and its lubricants and specialty products businesses.
Shares of HF Sinclair are already up 130% year to date (YTD), which has prompted analysts to speculate that the firm may reset downward a bit. However, if gasoline prices remain high, it may be able to prolong this adjustment.
A Retail-Based Approach Provides VarietyCrossAmerica Partners Today
CAPL
CrossAmerica Partners
$22.82 -0.03 (-0.13%)
As of 09/4/2026 03:57 PM Eastern
$19.67▼
$24.639.20%
16.66
For investors seeking a different approach entirely, CrossAmerica Partners provides access to a master limited partnership, owning and leasing fuel distribution and convenience stores across the country.
Retail gasoline margins may function somewhat independently of wholesale prices, but when fuel demand remains high, it can lead to higher volumes for these companies, along with strong in-store sales and even better rental income.
Fuel distributors are in many ways a defensive business, owing to consumers' reliance on gasoline even when the economy slows. This could insulate CrossAmerica Partners compared to some of its rivals in the industry when gas demand and prices eventually drop once again.
The Case for Gas-Price-Linked Stocks Remains StrongAll of these companies appear poised to do well so long as gasoline prices stay high, and there are plenty of reasons to expect that this will, in fact, be the case. Geopolitical risks remain deeply enmeshed in the industry's performance. Global refining capacity is still constrained. Diesel markets are light, with inventories reaching low levels that help to push refining margins upward.
To be sure, there are other companies in the oil and gas business that may benefit from continued high prices. Pipeline and midstream firms, for instance, benefit when production volumes are high, even if they are less directly linked to gasoline prices. When it comes to gas-price-linked shares, however, the three companies above may be an investor's first place to start.
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HB Wealth Management LLC boosted its stake in Phillips 66 (NYSE:PSX – Free Report) by 7.7% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 41,017 shares of the oil and gas company’s stock after acquiring an additional 2,947 shares during the period. HB Wealth Management LLC’s holdings in Phillips 66 were worth $6,934,000 as of its most recent filing with the SEC.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in PSX. Key Client Fiduciary Advisors LLC lifted its stake in Phillips 66 by 3.5% in the second quarter. Key Client Fiduciary Advisors LLC now owns 1,624 shares of the oil and gas company’s stock valued at $275,000 after purchasing an additional 55 shares during the last quarter. Threadgill Financial LLC grew its holdings in Phillips 66 by 3.5% during the second quarter. Threadgill Financial LLC now owns 1,693 shares of the oil and gas company’s stock valued at $286,000 after purchasing an additional 58 shares during the period. Nilsine Partners LLC increased its position in Phillips 66 by 1.5% in the second quarter. Nilsine Partners LLC now owns 4,068 shares of the oil and gas company’s stock worth $688,000 after buying an additional 59 shares during the last quarter. Calamos Wealth Management LLC raised its stake in shares of Phillips 66 by 2.0% in the second quarter. Calamos Wealth Management LLC now owns 3,084 shares of the oil and gas company’s stock valued at $521,000 after buying an additional 60 shares during the period. Finally, Somerset Trust Co raised its stake in shares of Phillips 66 by 0.3% in the second quarter. Somerset Trust Co now owns 21,301 shares of the oil and gas company’s stock valued at $3,601,000 after buying an additional 63 shares during the period. 76.93% of the stock is currently owned by hedge funds and other institutional investors.
Insider Activity In related news, EVP Brian Mandell sold 30,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $215.00, for a total value of $6,450,000.00. Following the sale, the executive vice president owned 61,595 shares in the company, valued at approximately $13,242,925. This trade represents a 32.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Kevin J. Mitchell sold 11,021 shares of Phillips 66 stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $190.03, for a total value of $2,094,320.63. Following the sale, the chief financial officer directly owned 97,376 shares of the company’s stock, valued at $18,504,361.28. This represents a 10.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 100,507 shares of company stock valued at $21,770,810 in the last quarter. 0.40% of the stock is currently owned by company insiders.
Phillips 66 Stock Up 0.0% Shares of NYSE PSX opened at $255.13 on Monday. The company has a quick ratio of 1.00, a current ratio of 1.32 and a debt-to-equity ratio of 0.57. The company has a market cap of $101.80 billion, a P/E ratio of 14.54, a P/E/G ratio of 0.19 and a beta of 0.71. Phillips 66 has a 52 week low of $126.74 and a 52 week high of $260.68. The business has a 50-day simple moving average of $214.38 and a two-hundred day simple moving average of $186.07. Phillips 66 (NYSE:PSX – Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.50 by $1.91. Phillips 66 had a net margin of 4.54% and a return on equity of 19.93%. The firm had revenue of $52.04 billion for the quarter, compared to the consensus estimate of $43.60 billion. During the same period in the prior year, the firm posted $2.38 earnings per share. Research analysts anticipate that Phillips 66 will post 24.07 earnings per share for the current fiscal year.
Phillips 66 announced that its Board of Directors has initiated a share buyback plan on Friday, July 31st that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the oil and gas company to reacquire up to 11.8% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.
Phillips 66 Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th were paid a $1.27 dividend. The ex-dividend date was Tuesday, August 18th. This represents a $5.08 annualized dividend and a yield of 2.0%. Phillips 66’s dividend payout ratio is currently 28.95%.
Analyst Ratings Changes PSX has been the subject of several research reports. Argus increased their price target on Phillips 66 from $185.00 to $197.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. TD Cowen upped their price objective on shares of Phillips 66 from $240.00 to $255.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Morgan Stanley increased their target price on shares of Phillips 66 from $180.00 to $196.00 and gave the stock an “overweight” rating in a research report on Friday, June 12th. Guggenheim upgraded shares of Phillips 66 to an “outperform” rating in a research note on Wednesday, May 27th. Finally, Weiss Ratings raised shares of Phillips 66 from a “hold (c)” rating to a “buy (b)” rating in a report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $218.94.
Get Our Latest Analysis on Phillips 66
Phillips 66 Profile (Free Report)
Phillips 66 (NYSE: PSX) is an independent energy manufacturing and logistics company engaged primarily in refining, midstream transportation, marketing and chemicals. The company processes crude oil into transportation fuels, lubricants and other petroleum products, operates pipeline and storage infrastructure, and participates in petrochemical production through strategic investments. Phillips 66 serves commercial, industrial and retail customers and positions its operations across the value chain of the downstream energy sector.
The company’s principal activities include refining crude oil into gasoline, diesel, jet fuel and feedstocks for petrochemical production; operating midstream assets such as pipelines, terminals and fractionators that move and store crude oil and natural gas liquids; and marketing and distributing fuels and lubricants through wholesale and retail channels.
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It has been about a month since the last earnings report for Phillips 66 (PSX - Free Report) . Shares have added about 23.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Phillips 66 due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Phillips 66 before we dive into how investors and analysts have reacted as of late.
Phillips 66 Q2 Earnings Top Estimates on Higher Realized Refining MarginsPhillips 66 reported second-quarter 2026 adjusted earnings of $9.41 per share, up 295.4% from $2.38 per share a year ago. The bottom line beat the Zacks Consensus Estimate of $7.68 by 22.5%.
Total revenues and other income increased 56.2% to $52.04 billion from $33.52 billion a year earlier. The top line surpassed the consensus estimate of $36.17 billion by 43.9%.
The strong quarterly results were driven by higher refining margins. The refining system achieved 96% crude capacity utilization and a clean product yield of 86%.
Refining Profit Surges on Wider MarginsRefining adjusted pre-tax income jumped to $3.09 billion from $392 million in the year-ago quarter. The segment benefited from stronger market crack spreads, favorable mark-to-market impacts and solid operating performance across the refining system.
Worldwide realized refining margins increased to $24.08 per barrel from $11.25 per barrel a year earlier. Total processed inputs averaged 2.05 million barrels per day (MMBbl/d), while turnaround expenses increased to $123 million from $53 million in the prior-year quarter. Refining adjusted EBITDA totaled $3.31 billion.
Phillips 66 Midstream Sets Volume RecordsMidstream adjusted pre-tax income increased 7.4% to $785 million. The segment’s adjusted EBITDA reached $1.05 billion, driven by higher margins and volumes following the absence of disruptions caused by Winter Storm Fern in the prior quarter.
Natural gas liquids (NGL) pipeline throughput to market averaged 943,000 barrels per day (Bbl/d), while fractionation volumes reached a record 1.02 MMBbl/d. Phillips 66 achieved record liquefied petroleum gas export volumes and brought the 220-million-cubic-feet-per-day (MMcf/d) Dos Picos II gas plant to full production.
Chemicals Results Improve on PricingChemicals adjusted pre-tax income rose sharply to $404 million from $20 million in the prior-year quarter. The improvement primarily reflected stronger margins across Chevron Phillips Chemical Company’s olefins and polyolefins operations.
Global olefins and polyolefins capacity utilization was 91% compared with 92% a year ago. The ethylene-to-high-density-polyethylene chain cash margin increased to 43.6 cents per pound from 7.4 cents per pound, providing a significant earnings tailwind despite slightly lower utilization. Chemicals adjusted EBITDA was $528 million.
Marketing and Renewables ReboundMarketing and Specialties generated adjusted pre-tax income of $514 million compared with $660 million a year earlier.
Renewable Fuels posted pre-tax income of $544 million, reversing a loss of $133 million in the year-ago period. Higher regulatory-credit pricing, increased production and favorable mark-to-market impacts supported the turnaround. Renewable fuel production increased to 53,000 Bbl/d from 40,000 Bbl/d a year ago.
Balance Sheet and Cash FlowsPhillips 66 generated $7.26 billion of operating cash flow. Excluding working-capital movements, operating cash flow totaled $4.32 billion. Adjusted EBITDA increased to $5.89 billion from $2.50 billion a year earlier.
As of June 30, 2026, Phillips 66 had total debt of $20.6 billion and net debt of $16.47 billion. Quarter-end liquidity included $4.10 billion of cash and $6.40 billion of committed credit capacity.
Phillips 66 Advances Growth & Shareholder ReturnsPSX returned $887 million to shareholders during the quarter. This included $508 million in dividends and $379 million in share repurchases. Capital expenditures and investments totaled $726 million, comprising $469 million of growth spending and $257 million of sustaining capital.
The company announced plans to construct the 300 MMcf/d Zeus Gas Plant in the Permian Basin and a 100,000 Bbl/d Coastal Bend NGL fractionator in Corpus Christi. CPChem also continued advancing the Golden Triangle Polymers and Ras Laffan Polymers projects, with full operations expected in 2027.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 8.99% due to these changes.
VGM ScoresAt this time, Phillips 66 has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Phillips 66 has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerPhillips 66 is part of the Zacks Oil and Gas - Refining and Marketing industry. Over the past month, Par Petroleum (PARR - Free Report) , a stock from the same industry, has gained 18.9%. The company reported its results for the quarter ended June 2026 more than a month ago.
Par Petroleum reported revenues of $2.97 billion in the last reported quarter, representing a year-over-year change of +56.8%. EPS of $10.10 for the same period compares with $1.54 a year ago.
For the current quarter, Par Petroleum is expected to post earnings of $4.84 per share, indicating a change of -18.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -9.5% over the last 30 days.
Par Petroleum has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
