The energy industry, broadly speaking, has benefited from the higher oil prices this year resulting from Iran's effective closure of the Strait of Hormuz.
Yet one energy subsector has significantly outperformed both the energy sector and the broader market.
I'm talking about refiners. As measured by the VanEck Oil Refiners ETF (CRAK -1.00%), refiner stocks are up about 24% since the start of the U.S.-Iran war. That's much better than the overall energy sector, as measured by the State Street Energy Select Sector ETF, up 9% over that period, and the S&P 500 index, up about 7.5%.
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Digging down to individual companies, some of the biggest refiners have seen much larger gains.
Marathon Petroleum (MPC -0.97%) is up 59% since the war began, Valero Energy (VLO -0.95%) has climbed 52%, and Phillips 66 (PSX -0.04%) is up 36%.
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So, what's going on that has driven refiner stocks so much higher than other energy stocks in recent months?
Basically, it's all about crack spreads. Those reflect the difference between the price of crude oil that refiners buy on global markets and the price they can charge for the refined products they extract from it, such as gasoline, diesel, or heating oil. That difference is also essentially the refiner's profit margin.
The most common industry benchmark is the 3-2-1 crack spread, the spread obtained by converting three barrels of crude oil into two barrels of gasoline and one barrel of a distillate, such as diesel or heating oil.
Image source: Getty Images.
So while many people believe the price of gasoline and other products moves exactly in tandem with the price of crude, in fact, there's a difference because of the refining process. When there's a shortage of refining capacity, the price of products like gasoline and jet fuel will rise and deliver bigger profit margins to refiners.
That's the case today.
A global refining capacity shortage Due to wars in Ukraine and the Persian Gulf and the resulting destruction of refining infrastructure, as well as pandemic-era closures and aging infrastructure, global refining utilization was about 78 million barrels a day during the second quarter. That's 5 million barrels below the same period a year ago.
That's created a bottleneck that's driven the 3-2-1 crack spread for U.S. refiners to about $64, a new high.
Even if the two conflicts end tomorrow, it will take much longer to get refining capacity back where it needs to be to meet global demand for petroleum products.
That has generated considerable optimism about refining stocks. This week, Goldman Sachs raised its price target for Valero from $286 to $357, suggesting a 14% upside from the current price.
While I wouldn't put a lot of money into oil companies, as the price of oil remains highly volatile due to the twists and turns of the Persian Gulf conflict, I would invest in refiners. The global refining shortage driving their margins higher will last a lot longer.
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) , 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 #2 (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 9.82% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 9.82% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 20.5% compares favorably with the industry's 20.2% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Phillips 66 have risen 15.53%, and are up 66.49% in the last year. In comparison, the S&P 500 has only moved 4.48% and 17.65%, 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 2,574,860 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 1 lower for the full year. These revisions helped boost PSX's consensus estimate, increasing from $18.26 to $21.96 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been 1 downward revision in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that PSX is a #2 (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 might want to bet on Phillips 66 (PSX - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Phillips 66 basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Phillips 66 imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Phillips 66For the fiscal year ending December 2026, this oil refiner is expected to earn $21.96 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Phillips 66. Over the past three months, the Zacks Consensus Estimate for the company has increased 44.6%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Phillips 66 to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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.
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.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest 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 ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out 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 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 A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% 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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
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.
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 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 B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.66; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.58 to $19.84 per share. PSX boasts an average earnings surprise of +67.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PSX should be on investors' short list.
ABN Amro Investment Solutions increased its stake in Phillips 66 (NYSE:PSX – Free Report) by 15.1% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 24,041 shares of the oil and gas company’s stock after purchasing an additional 3,147 shares during the period. ABN Amro Investment Solutions’ holdings in Phillips 66 were worth $4,380,000 as of its most recent filing with the SEC.
Other hedge funds and other institutional investors have also bought and sold shares of the company. MUFG Securities EMEA plc grew its holdings in shares of Phillips 66 by 113.5% during the 4th quarter. MUFG Securities EMEA plc now owns 16,518 shares of the oil and gas company’s stock valued at $2,131,000 after purchasing an additional 8,783 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its position in Phillips 66 by 17.0% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,371,804 shares of the oil and gas company’s stock valued at $177,018,000 after buying an additional 199,646 shares in the last quarter. Truist Financial Corp grew its stake in shares of Phillips 66 by 1.6% during the fourth quarter. Truist Financial Corp now owns 675,084 shares of the oil and gas company’s stock worth $87,113,000 after buying an additional 10,585 shares during the last quarter. Horizon Investments LLC grew its stake in shares of Phillips 66 by 478.4% during the fourth quarter. Horizon Investments LLC now owns 63,290 shares of the oil and gas company’s stock worth $8,167,000 after buying an additional 52,348 shares during the last quarter. Finally, LBP AM SA increased its holdings in shares of Phillips 66 by 237.8% during the fourth quarter. LBP AM SA now owns 56,380 shares of the oil and gas company’s stock worth $7,275,000 after buying an additional 39,690 shares in the last quarter. Institutional investors and hedge funds own 76.93% of the company’s stock.
Phillips 66 Price Performance Phillips 66 stock opened at $211.49 on Thursday. The stock has a market capitalization of $84.79 billion, a price-to-earnings ratio of 20.84, a PEG ratio of 0.28 and a beta of 0.69. Phillips 66 has a 52-week low of $118.07 and a 52-week high of $216.08. The stock’s 50 day moving average price is $181.23 and its two-hundred day moving average price is $167.47. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.85 and a current ratio of 1.13.
Phillips 66 (NYSE:PSX – Get Free Report) last issued its earnings results on Wednesday, April 29th. The oil and gas company reported $0.49 EPS for the quarter, beating analysts’ consensus estimates of ($0.54) by $1.03. Phillips 66 had a return on equity of 10.98% and a net margin of 2.99%.The business had revenue of $32.54 billion during the quarter, compared to analyst estimates of $35.86 billion. During the same period in the previous year, the company posted ($0.90) EPS. The firm’s revenue was up 6.9% compared to the same quarter last year. On average, equities analysts predict that Phillips 66 will post 19.84 earnings per share for the current year.
Phillips 66 Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be issued a dividend of $1.27 per share. The ex-dividend date is Tuesday, August 18th. This represents a $5.08 annualized dividend and a yield of 2.4%. Phillips 66’s dividend payout ratio is 50.05%.
Insider Buying and Selling at Phillips 66 In other Phillips 66 news, 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 transaction of $2,094,320.63. Following the transaction, the chief financial officer directly owned 97,376 shares of the company’s stock, valued at $18,504,361.28. The trade was a 10.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kevin Omar Meyers bought 175 shares of Phillips 66 stock in a transaction dated Wednesday, May 6th. The stock was acquired at an average cost of $173.12 per share, with a total value of $30,296.00. Following the completion of the acquisition, the director owned 16,799 shares of the company’s stock, valued at $2,908,242.88. This represents a 1.05% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold 41,021 shares of company stock valued at $7,195,257 in the last quarter. 0.40% of the stock is currently owned by corporate insiders.
Analyst Ratings Changes A number of research analysts have recently commented on PSX shares. Wall Street Zen cut Phillips 66 from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Argus boosted their target price on shares of Phillips 66 from $185.00 to $197.00 and gave the stock a “buy” rating in a report on Thursday, May 14th. Weiss Ratings cut shares of Phillips 66 from a “buy (b-)” rating to a “hold (c)” rating in a research report on Friday, May 1st. BMO Capital Markets raised their price target on shares of Phillips 66 from $195.00 to $215.00 and gave the company an “outperform” rating in a research note on Wednesday, May 13th. Finally, Scotiabank lifted their price target on shares of Phillips 66 from $140.00 to $151.00 and gave the stock a “sector perform” rating in a report on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $198.72.
Check Out Our Latest Report on PSX
About Phillips 66 (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.
See Also Five stocks we like better than Phillips 66 Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding PSX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Phillips 66 (NYSE:PSX – Free Report).
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Phillips 66 (PSX - Free Report) closed at $212.27 in the latest trading session, marking a +1.66% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.89% for the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
Shares of the oil refiner witnessed a gain of 23.98% over the previous month, beating the performance of the Oils-Energy sector with its gain of 4.15%, and the S&P 500's loss of 0.63%.
The upcoming earnings release of Phillips 66 will be of great interest to investors. The company's earnings report is expected on August 5, 2026. The company is forecasted to report an EPS of $7.68, showcasing a 222.69% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $36.17 billion, reflecting a 7.91% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.84 per share and a revenue of $146.24 billion, signifying shifts of +208.07% and +7.09%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Phillips 66. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 4.69% higher within the past month. At present, Phillips 66 boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Phillips 66 is presently trading at a Forward P/E ratio of 10.53. This denotes a premium relative to the industry average Forward P/E of 9.61.
Meanwhile, PSX's PEG ratio is currently 0.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.38 based on yesterday's closing prices.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 17% of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Listen to the audio version of this article (generated by AI).
SOXX dips into a bear market… Luke Lango on when the AI bull will return… one of Jonathan Rose’s favorite trades today… the blue-chip investment that Brian Hunt flagged as just making a new all-time high As I write on Monday, the tech/AI trade is pushing higher. But on Friday, it briefly dipped into an official bear market.
I’m referencing the Philadelphia Semiconductor Index, tracked by the iShares Semiconductor ETF (SOXX). It provides diversified exposure to the entire critical supply chain of the AI boom – from chip designers, to custom accelerators, to critical manufacturing equipment. It’s a one-click way to own “AI.”
And here’s how it looked at one point on Friday – down 20%+, official bear-market territory.
This bear hasn’t been driven by bad news – it’s arrived despite some of the best news the AI infrastructure trade has seen all year.
Take last week’s earnings from AI bellwether Taiwan Semiconductor Manufacturing Co. (TSMC).
The company reported a record-shattering second quarter, with revenue rising 36% year over year to $40.20 billion and net income surging 77%, driven by strong demand for AI chips. Gross margins were good, and management raised its full-year revenue growth outlook to over 40%, supported by a massive expansion of its capital expenditure budget.
And yet Wall Street punished that blowout performance with a 5% selloff.
It’s not the only one.
Fellow AI giants ASML (ASML) and Samsung Electronics also smashed earnings last week (Samsung reported a colossal 15-fold surge in operating profit) only to be rewarded with heavy selling – ASML dropped 5% the day after it reported earnings while Samsung tanked about 8%.
The most fascinating part of all this is that the “beat-and-drop” anomaly is occurring against a backdrop of clear forward visibility. These AI infrastructure giants aren’t just promising growth – their explosive future revenue and cash flows are heavily backlogged and already under long-term contract.
So, why is AI suddenly in a bear market then?
Because Wall Street has gotten nervous – not about today’s orders, but about tomorrow’s.
Investors are increasingly questioning whether today’s AI spending spree still has legs.
The “capex-taker problem” Last week, our technology expert Luke Lango, editor of Innovation Investor, detailed what’s happening:
The market’s hesitation is not about today’s demand (for AI), but about whether hyperscaler spending remains as robust in 2027 and beyond.
Yes, the hyperscalers have spent billions so far – profiting the supply-chain companies like ASML, Taiwan Semiconductor, and Samsung extravagantly – and they’ve pledged billions more to come.
But yesterday’s pledge isn’t the same thing as tomorrow’s delivery. And Wall Street is increasingly worried it will vanish.
Back to Luke:
The problem is that supply-chain companies are capex takers—they build against spending decisions made months or years ago—and therefore cannot answer the market’s only remaining question:
Whether hyperscalers intend to sustain today’s spending into 2027 and 2028.
Well, we don’t have to wait much longer to find out.
That demand-side confirmation begins arriving on Wednesday when Google (GOOG) reports, followed by Microsoft (MSFT) and Meta (META) next Wednesday (July 29), and Amazon (AMZN) on July 30.
Back to Luke:
The four questions that matter remain straightforward:
Do hyperscalers maintain or raise 2026 AI capex? Do they provide constructive commentary around 2027 and 2028 spending? Are AI investments producing measurable returns that justify continued expansion? And do they announce additional infrastructure projects that demonstrate the buildout is still accelerating? Luke believes that all four questions will receive positive answers. And if so, get ready for a sharp recovery rally across AI infrastructure.
Here’s his bottom line:
The capex taker problem is real and it ends [starting this week].
Google, Microsoft, Meta, and Amazon will tell the market what Samsung, ASML, and TSMC structurally cannot: Whether the AI infrastructure buildout has durable legs into 2027 and 2028.
We believe the answer is yes, and every leading indicator from the demand side supports that belief.
To see how Luke is positioning his Innovation Investor subscribers to be ready for the potential AI rally, click here.
Now, while money has been flowing out of AI infrastructure over the past few weeks, another group continues to strengthen: oil refiners.
And that’s exactly where veteran trader Jonathan Rose of Masters in Trading Live is finding opportunity today…
Plenty of fuel in the tank Jonathan has long kept a close eye on oil refiners.
One of the primary indicators he watches is the “crack spread” – essentially the profit margin refiners earn by turning crude oil into gasoline and diesel.
Historically, refinery stocks tend to follow that margin. When the crack spread expands – as it’s been doing recently – refiners’ earnings power often improves soon after.
During last Friday’s free Masters in Trading Live video, Jonathan pointed out that the crack spread has continued strengthening – and then called it one of the most powerful moves he’s ever seen:
I’ve actually never seen such a strong, violent move…
You want to stay long. All refiners. Patience. There is no reason to cover.
Among the names he highlighted were Phillips 66 (PSX), HF Sinclair (DINO), CVR Energy (CVI), and PBF Energy (PBF).
As you can see below, over the last month, these stocks have surged between 24% and 67%.
While this might feel like “too far, too fast,” just recognize that as long as refining margins continue to expand, the industry’s underlying fundamentals remain supportive of more gains.
If you’d like to hear Jonathan walk through the charts himself – including why he believes the crack spread remains one of the market’s most reliable leading indicators – you can watch last Friday’s free Masters in Trading Live episode here.
And if you’re new to Jonathan, he publishes these free MIT Live videos every day that the market is open at 11 a.m. ET. He profiles market trends, explains entries and exits, discusses the opportunities he’s watching in real time, and offers plenty of tickers along the way. You can sign up right here.
But energy isn’t the only place investors have been finding relief from the wobbly AI trade.
Senior Analyst Brian Hunt just highlighted the recent outperformance of a traditionally defensive corner of the market…
There’s always a bull market somewhere One of the easiest mistakes investors make during a sharp selloff is assuming everything is falling.
That’s rarely true.
Here’s Brian, editor of Money & Megatrends, with the reality:
There’s always a bull market somewhere. And in pursuit of finding such bull markets, money usually stays in the market.
It ‘sloshes’ back and forth in between various sectors, industries, and themes… looking for at least a temporary home where it will be treated well.
This month, that “sloshing” has become especially apparent.
While many of the market’s premier AI infrastructure stocks are down 20%+ from their recent highs, Brian notes that another group has been setting records – the Invesco Dividend Achievers ETF (PFM) just hit a fresh all-time high.
Dividend Achievers are companies that have raised their dividends every year for at least 10 years. Think Johnson & Johnson (JNJ), Visa (V), Coca-Cola (KO), Procter & Gamble (PG), ExxonMobil (XOM), Chevron (CVX), Walmart (WMT), and PepsiCo (PEP). Many of these companies are as “blue” as “blue chip” comes.
If the AI selloff is keeping you from sleeping well, you don’t have to abandon the market altogether – just choose a different investment vehicle, one that has a multi-decade track record of strength.
Back to Brian:
These businesses have paid and increased their dividends through recessions, bear markets, and a global pandemic.
In terms of consistency, these firms rank just behind the rising sun. PFM is a fund designed specifically to own such firms.
Whether the current AI selloff proves temporary, as Luke expects, or lasts longer than investors hope, Brian’s broader reminder is important to remember:
There’s always a bull market somewhere.
If you’d like Brian’s help in finding them, he writes Money & Megatrends every day the market is open, highlighting all sorts of opportunities before they become front-page news – best of all, it’s 100% free.
His issues are loaded with trend analysis, actionable advice, and loads of specific tickers. You can sign up right here.
Coming full circle We’ll learn a lot over the next two weeks.
The hyperscalers are finally going to answer the question Wall Street has been asking all summer: Is the AI infrastructure buildout still accelerating, or is the spending boom beginning to fade?
If Luke is right, this recent AI bear market could prove remarkably short-lived.
If not, Jonathan and Brian offer an equally valuable reminder: markets don’t move as a single giant monolith. Capital is constantly searching for opportunity – sometimes in oil refiners, sometimes in blue-chip dividend growers, and soon enough, perhaps back into AI.
Have a good evening,
Jeff Remsburg
(Disclosure: I own TSM, ASML, GOOGL, MSFT, AMZN, CVX, WMT)
Key Takeaways PSX has returned about $46 billion to shareholders through dividends and share repurchases since 2012. Phillips 66 plans to return more than 50% of net operating cash flow to shareholders.Phillips 66 expects operating cash flow above $9 billion in 2027, supporting future capital returns. Phillips 66 (PSX - Free Report) is a premier refiner in the energy sector, generating revenues by processing diverse feedstocks into finished goods. Since 2012, the company has returned approximately $46 billion to its shareholders, comprising $26 billion in share repurchases and $20 billion in dividends while delivering a 15% annual dividend growth rate. In the first quarter of 2026, PSX returned $778 million, including $509 million in dividends and $269 million in buybacks and increasing its quarterly dividend by 7%.
These distributions highlight Phillips 66’s commitment to building long-term shareholder value. PSX expects to continue returning more than 50% of net operating cash flow (excluding working capital) to shareholders along with maintaining a secure and growing dividend. Its Midstream business is expected to fully fund dividends and sustaining capital, while cash flows generated from Refining, Chemicals, and Marketing and Specialties business are projected to support buybacks and growth investments.
Phillips 66 expects operating cash flow to exceed $9 billion in 2027, enabling an anticipated shareholder distribution yield of 7.5%, including 3.1% from dividends and 4.5% from share repurchases. This strong cash-generation outlook is underpinned by disciplined investments in high-return sanctioned projects, including gas plant expansions, refining upgrades and petrochemical capacity additions across its integrated value chain. By combining strategic growth investments with robust cash flows, PSX is well-positioned to sustain dividend growth, execute share repurchases and deliver long-term shareholder value.
Do Valero & Marathon Petroleum Reward Their Shareholders?Two refiners that have consistently prioritized shareholder returns are Valero Energy (VLO - Free Report) and Marathon Petroleum (MPC - Free Report) .
Valero has maintained regular dividend increases and substantial share repurchases, steadily increasing its annual dividend from 65 cents per share in 2012 to an annualized equivalent of $4.08 in 2026. Since 2021, VLO has returned $42.4 billion to its shareholders through dividends and share buybacks, fueled by strong free cash flow generated from its refining and renewable diesel businesses.
Marathon Petroleum has also returned significant capital through dividends and aggressive share buybacks, backed by robust refining earnings and cash distributions from its midstream interests. In the first quarter of 2026, MPC strengthened its shareholder returns by distributing $1 billion of capital and authorizing an additional $5 billion in share repurchases. These actions highlight MPC's focus on disciplined capital allocation and long-term shareholder value enhancement.
VLO and MPC continue to emphasize disciplined capital allocation, making shareholder returns a key pillar of their long-term strategies.
PSX’s Price Performance, Valuation & EstimatesPhillips 66's shares have gained 64.1% over the past year compared with the industry’s 55.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, PSX trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 14.31X. This is above the broader industry average of 6.16X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PSX's 2026 earnings has seen upward revisions over the past seven days.
Image Source: Zacks Investment Research
PSX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Disconnect Between Crude and Crack SpreadsLamarre, co-founder of the International Digital Exchange (INDEX), attributes this to a fundamental divergence: "This looks more like a temporary crude surplus running into a genuinely separate product shortage, rather than tight refining capacity dragging crude prices up with it."
Consequently, Lamarre cautions against using broad commodity funds to trade the refining crunch: "I wouldn’t lean too hard on the refining story as a support factor for something like USO or BNO specifically."
The Case for Individual RefinersFurthermore, Lamarre and Bitunix analyst Dean Chen warn that futures-based ETFs face contango risks that can “quietly eat into returns” through “negative roll costs.” Lamarre emphasizes USO and BNO are “tactical vehicles right now, not buy-and-forget.”
Lamarre’s Crude Price ScenariosEmphasizing a wide-band outlook over tight forecasts, Lamarre outlines four crude scenarios:
Baseline Range: Brent $80–$100 and WTI $76–$95. Near-Term Escalation: If Hormuz disruptions hold, Brent could test $100 and WTI mid-$90s. Full Chokepoint Closure: A total Strait shutdown could push crude to $110–$120. De-escalation: Normalizing flows could ease Brent to $75–$90 and WTI to $70–$85. Navellier maintains war spikes will be “temporary,” projecting WTI to peak “up to $82 per barrel” through Labor Day.
Price Action in Crude and Related InstrumentsAt the last check, Crude Oil WTI Futures were down 0.61% at $81.28, and Brent Oil Futures were 0.05% lower at $88.06.
Meanwhile, USO closed 3.91% higher on Friday, and it was down 0.25% in the premarket on Monday. Similarly, BNO closed 4.10% higher at $48.70, and it was 0.11% higher in the premarket on Mnday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Castleski via Shutterstock
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Instead, Navellier advises that investors should “prefer individual stocks,” specifically recommending refiners like Phillips 66 (NYSE:PSX) to capitalize on the 2026 energy crunch.
Case Against Energy ETFsNavellier, founder and chief investment officer of Navellier & Associates, is taking a firm stance against broad commodity funds amid surging market volatility. "I do not recommend any energy ETFs and prefer individual stocks," Navellier stated.
This sentiment regarding the structural risks of ETFs is echoed by Bitunix Exchange analyst Dean Chen. Chen warned that funds like USO and the BNO carry significant futures rollover risks.
If the U.S.-Iran conflict suddenly de-escalates and supply chains normalize, the futures curve could flip into contango, generating painful “negative roll costs” for long-term ETF holders.
‘Temporary’ War PremiumWhile geopolitical tensions and naval blockades have pushed crude prices to near-term highs, Navellier does not foresee a sustained, runaway rally driven by the conflict alone.
He expects strong seasonal factors to support prices, projecting WTI crude to remain high—”up to $82 per barrel for WTI”—through Labor Day due to peak worldwide demand.
However, he dismissed the longevity of the war-driven price premium. "The recent uptick in crude oil prices due to the resumption of U.S. attacks on the IRGC is expected to be temporary, since the IRGC is being systematically neutered," Navellier explained.
The 2026 Refining BottleneckNavellier’s preference for individual refining stocks like PSX aligns perfectly with a broader structural shift in the energy sector. With approximately 10% of global refining capacity currently offline, active refiners are posting historic profit margins.
As Chen summarized, "In 2026, global oil pricing is no longer determined only by how much crude exists underground, but by the physical limits of alternative trade routes and whether critical energy infrastructure can survive geopolitical conflicts."
For now, experts agree that investing directly in resilient refining infrastructure offers a stronger tactical advantage than betting on crude futures.
Price Action in Crude and Related InstrumentsNavellier’s recommendations, PSX and DINO have both advanced in 2026. PSX was up 56.01% year-to-date, 17.05% over the month and 62.79% over the year. Meanwhile, DINO gained 88.45% YTD, 30.43% over the month and 102.57% over the year.
At the last check, Crude Oil WTI Futures were up 1.63% at $80.24, and Brent Oil Futures were up 1.28% at $85.31. Meanwhile, USO closed 1.71% lower on Thursday, and it was up 1.38% in the premarket on Friday. Similarly, BNO closed 1.70% lower at $47.78, and it was 1.22% higher in the premarket on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: MMD Creative on Shutterstock.com
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Key Takeaways Phillips 66 may gain from tight fuel markets and elevated crack spreads supporting refining margins.Refinery closures and Hormuz disruptions tightened supply as gasoline and jet fuel demand stayed robust.PSX's minimal Middle East crude exposure supports steady refinery utilization amid supply disruptions. Phillips 66 (PSX - Free Report) is an integrated energy player with diversified operations spanning midstream, refining and chemicals. The company is emerging as one of the beneficiaries of supply disruptions through the Strait of Hormuz, a critical chokepoint that accounts for nearly one-fifth of global energy flows. Renewed geopolitical tensions between the United States and Iran have once again raised uncertainty regarding shipping traffic through the Strait of Hormuz, reigniting supply concerns.
Refined product markets were already tightening ahead of the conflict due to the loss of refining capacity following the closures of Phillips 66's Los Angeles refinery and Valero Energy's Benicia refinery in the United States, along with several other refineries in Europe. Supply disruptions through the Strait of Hormuz have amplified the tightness of refined-product markets at a time when global refining capacity remains constrained and demand for products such as gasoline and jet fuel stays robust.The 3-2-1 crack spread, widely known as an indicator of refining profitability, has risen significantly since the start of the conflict and remains at elevated levels, creating a highly favorable operating environment for U.S. refiners, including Phillips 66.
In fact, in its first-quarter earnings call, management highlighted that tight product markets are expected to support refining margins for the rest of the year. Moreover, PSX is expected to remain largely unaffected by crude-supply disruptions, as it sources the majority of its crude from Canada, the United States and Latin America, with only about 1% coming from the Middle East. This allows the company to sustain high refinery utilization levels and benefit from a constructive refining environment. However, the increase in crude oil prices due to renewed tensions in the Middle East remains a cause of concern, as it may raise feedstock costs.
PARR & VLO: Other Refining Players to Benefit From Tight Fuel MarketsPar Pacific Holdings (PARR - Free Report) operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho; refining operations in Hawaii, Wyoming, Washington and Montana; and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products. Management noted that Par Pacific has no crack spread hedges in place, which should enable it to benefit from rising refining margins.
Valero Energy (VLO - Free Report) is among the largest independent refiners in the United States, with a combined high-complexity throughput capacity of nearly 3 million barrels per day across its refineries. Its refining footprint is heavily concentrated along the U.S. Gulf Coast and the Midcontinent, offering feedstock sourcing flexibility, with management emphasizing that crude availability is not a significant constraint for the company. Moreover, its Gulf Coast access enables it to sell refined products in high-demand markets and capitalize on the current increase in export demand for distillates driven by the supply disruptions in the Middle East. This positions Valero to benefit from elevated refining margins and strong international demand for refined products.
PSX’s Price Performance, Valuation & Estimates
Phillips 66 shares have gained 67.5% over the past year compared with the industry's 53.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, PSX trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 13.72X. This is above the broader industry average of 5.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PSX's 2026 earnings has seen upward revisions over the past seven days.
Image Source: Zacks Investment Research
PSX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Supports evolving voice services and long term network strategy
PLANO, Texas, /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global leader in real-time communications technology and IP optical networking solutions, today announced that Hub One, one of France's leading operators and integrators connecting, digitalizing and protecting businesses and public organizations, has selected Ribbon's PSX Policy and Routing Engine to serve as the core call routing engine for its voice traffic. This announcement highlights Ribbon's continued momentum in delivering differentiated, software-driven solutions for service providers and enterprises worldwide.
"Ribbon's solution helps us transform the way businesses and critical infrastructures connect and innovate on a daily basis," said Khalid OUDASSI, deputy head infrastructure from Hub One. "PSX is unique in its ability to connect disparate elements of our communications environment, including unified communications, private 4G/5G, contact center, or SIP trunks. It delivers a competitive advantage by enabling us to create a seamless experience for our customers as they migrate their communications services to HubOne."
A centralized policy and call routing engine, Ribbon's PSX enables service providers to assign priority, offer admission control, address least cost routing (LCR), quality of service (QoS) routing, toll-free number routing, and number translation services. It also provides call validation services to mitigate call spoofing and robocalls, while its distributed deployment model assures resiliency and eliminates the expense of creating, maintaining, and synchronizing routing and policy across hundreds or thousands of sites and network elements.
"This deployment marks a significant expansion of our relationship with Hub One," said Christian Erbe, Head of EMEA Sales Ribbon. "Our solution uniquely delivers the advanced policy control, resilience, and scalability needed for the large, complex voice environments HubOne excels in."
About Ribbon
Ribbon Communications (Nasdaq: RBBN) delivers secure cloud communications and IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our end-to-end portfolio of communications software and IP Optical networking solutions delivers superior value and innovation by leveraging cloud-native architectures, automation and analytics tools, and leading-edge security. We maintain a keen focus on our commitments to Environmental, Social, and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon, please visit rbbn.com
About Hub One
Hub One is a digital technology operator serving enterprises and public sector organizations. A recognized player in digital transformation for demanding environments, the company relies on three complementary areas of expertise: telecommunications — including the operation of France's largest private professional 4G/5G network — traceability, and cybersecurity through its subsidiary SysDream.
Hub One designs, deploys, and operates reliable and secure solutions, with end-to-end control from networks and infrastructure to business applications and services.
With a nationwide presence and more than 10 regional offices, Hub One employs over 600 people and serves more than 5,000 customers. Hub One is a company of Groupe ADP and a wholly owned subsidiary of Aéroports de Paris SA.
For more information, visit: https://www.hubone.fr/
Important Information Regarding Forward-Looking Statements
The information in this release contains forward-looking statements regarding future events that involve risks and uncertainties. All statements other than statements of historical facts contained in this release, including those regarding the expected benefits from use of Ribbon Communication's products, are forward-looking statements. The actual results of Ribbon Communications may differ materially from those contemplated by the forward-looking statements. For further information regarding risks and uncertainties associated with Ribbon Communications' business, please refer to the "Risk Factors" section of Ribbon Communications' most recent annual or quarterly report filed with the SEC. Any forward-looking statements represent Ribbon Communications' views only as of the date on which such statement is made and should not be relied upon as representing Ribbon Communications' views as of any subsequent date. While Ribbon Communications may elect to update forward-looking statements at some point, Ribbon Communications specifically disclaims any obligation to do so.
Should investors prioritize the technological logistics of the Permian Basin or the carbon capture pivot in California? Choosing between Atlas Energy Solutions (AESI 0.77%) and California Resources (CRC +0.78%) requires weighing two very different energy strategies.
Atlas Energy Solutions focuses on sand and logistics for oil producers in West Texas, aiming for efficiency through scale. California Resources produces oil and gas while building a carbon sequestration business to navigate California's strict regulations. Comparing them helps you decide if you prefer an infrastructure play or a resource producer transitioning into carbon management.
Atlas Energy Solutions provides proppant and logistics for producers in the Permian Basin of West Texas and New Mexico. The company serves major exploration and production operators, with a high concentration: the ten largest customers generate approximately 82% of total revenue. Customer concentration like this adds a layer of risk to the business since the power segment depends on just two customers for over 30% of its revenue.
In FY 2025, revenue reached nearly $1.1 billion, representing 3.7% growth over the previous year. Despite the steady sales, the company reported a net loss of roughly $50.3 million for the fiscal period, almost a $110 million swing from profits in 2024. This performance marks a shift from earlier years when the company maintained positive net income and higher profitability across its operations.
As of its December 2025 balance sheet, the debt-to-equity ratio is nearly 0.5x. This ratio compares total debt to shareholder equity to show financial leverage. Free cash flow was negative at nearly $31 million, and note that stock-based compensation (SBC) represented roughly 28% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for California ResourcesCalifornia Resources operates as an independent producer focused on the unique energy landscape of California. The company markets crude oil and natural gas to the six remaining major refineries in the state, including sites owned by Phillips 66 (PSX +2.34%) and Valero (VLO +1.55%). While it faces logistics challenges from pipeline suspensions, the company is also expanding into carbon management, a field often discussed alongside renewable energy stocks because of its role in decarbonization.
For FY 2025, revenue was nearly $3.7 billion, which was an increase of roughly 15% from the previous year. The company reported net income of $359 million. While revenue grew, the net margin contracted about 3% from the prior fiscal period.
In its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.4x, calculated by dividing total debt by shareholder equity. The company generated a strong positive free cash flow of $543 million, representing cash from operations after capital expenditures are paid.
Risk profile comparisonAtlas Energy Solutions faces risks from cyclicality and demand volatility, as proppant demand is directly tied to oil and natural gas activity levels. The power segment is vulnerable because it relies on a single key supplier for unique equipment, meaning any delivery delays could disrupt operations. Furthermore, the company is investing heavily in autonomous trucking and AI software, which carry technical implementation risks and potential cybersecurity threats.
California Resources operates under a strict regulatory and political environment in California that creates significant permitting risks. Its carbon management division, Carbon TerraVault, depends on federal and state tax incentives that could change with new legislation. The company also faces geographic concentration risks from wildfires and earthquakes, and it must successfully integrate assets from its merger with Berry Corporation to achieve planned financial synergies.
Valuation comparisonCalifornia Resources currently trades at a significantly lower multiple of future earnings estimates compared to Atlas Energy Solutions, suggesting a more conservative valuation for the producer.
MetricAtlas Energy SolutionsCalifornia ResourcesSector BenchmarkForward P/E21.7x8.2x30.2xP/S ratio1.7x1.3xn/aSector benchmark uses the SPDR XLE sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?California Resources and Atlas Energy Solutions both are in the U.S. oil and gas business, but they are quite different companies for investors to evaluate.
Atlas Energy Solutions is a supplier to domestic wildcatters, selling localized generators that utilize wellhead gas that would otherwise be wasted, sand (proppant) for oil and gas fracking, and logistics solutions for producers. It’s a slow-growing business, with revenue expected to grow about 2.5% in fiscal 2026 to $1.2 billion, accompanied by a wider net loss of $95 million, according to analyst projections. Wall Street expects cost savings and steadily rising revenue in subsequent years to put Atlas back into profitability, although longer-term projections are inherently more speculative.
As a producer on the West Coast, California Resources essentially operates in a distinct market from the rest of the country. The Pacific states’ oil and gas supplies are priced in a market focused on Asian oil flows, since the West Coast is effectively cut off from eastern U.S. oil and gas supplies due to the cost of transporting fuel over the Rockies. That means California Resources’ production is priced off the Brent oil market, which is traded in dollars in London and largely serves as the pricing basis for Asia-bound crude oil. That should benefit CRC more, given the Iran war’s effect on Brent prices, but the outlook for the company’s 2026 is weaker due to difficulties obtaining permits to expand production. Management says it is improving, so 2027 should be a return to growth and profitability, but for this year, lower sales of $3.4 billion and a swing to a net loss seem likely.
Still, while Atlas Energy Solutions is a slow but steady grower, oil and gas is a commodity business, and a stock’s P/S and forward P/E ratio should play a larger influence in the decision to buy. Given that California Resources Corp is much cheaper on those ratios than Atlas, go with CRC.
Key Takeaways Marathon Petroleum posted $1.4B Refining & Marketing adjusted EBITDA in Q1 2026.MPC achieved 99% refining margin capture despite completing nearly 40% of planned annual maintenance.MPC benefits from domestic crude sourcing, logistics flexibility and higher-margin jet fuel projects. The current refining market remains highly supportive for U.S. refiners, and Marathon Petroleum Corporation (MPC - Free Report) is emerging as a clear beneficiary. Geopolitical tensions in the Middle East have disrupted global fuel supply, while strong demand for gasoline, diesel and jet fuel has kept crack spreads elevated. At the same time, constrained global refining capacity and robust export demand continue to create a favorable pricing environment, allowing efficient refiners to capture stronger margins.
Marathon Petroleum is among the biggest beneficiaries of these conditions. During the first quarter of 2026, the company generated $1.4 billion in Refining & Marketing adjusted EBITDA, with refining margin capture reaching 99% despite completing nearly 40% of its planned annual maintenance. Its refineries operated at 89% utilization, reflecting disciplined operations and strong commercial execution.
The company's advantage extends beyond favorable industry conditions. Marathon Petroleum sources most of its crude from the United States and Canada, reducing exposure to global supply disruptions while enabling it to capitalize on attractive domestic feedstock economics. Its integrated logistics network also allows rapid adjustments in crude sourcing, product yields and exports, helping maximize profitability as market conditions evolve.
Strategic investments further strengthen this position. The recently completed Garyville jet fuel expansion and upcoming yield-improvement projects increase exposure to higher-margin products, particularly jet fuel and diesel, where demand remains healthy. Combined with strong planning, operational reliability and commercial optimization, these initiatives position Marathon Petroleum to sustain superior refining margins even as market volatility persists.
Other Energy Players Benefiting From Current Refining MarginsValero Energy Corporation (VLO - Free Report) is among the largest independent refiners in the United States, with a combined high-complexity throughput capacity of nearly 3 million barrels per day across its refineries. VLO's refining footprint is heavily concentrated along the U.S. Gulf Coast and the Midcontinent, offering feedstock sourcing flexibility, with management emphasizing that crude availability is not a significant constraint for the company. Moreover, its Gulf Coast access enables it to sell refined products in high-demand markets and capitalize on the current increase in export demand for distillates driven by the supply disruptions in the Middle East. This positions Valero to benefit from elevated refining margins and strong international demand for refined products.
Phillips 66 (PSX - Free Report) is well-positioned to benefit from the current refining environment through its diversified refining, midstream and chemicals businesses. Supply disruptions in the Middle East, particularly around the Strait of Hormuz, are expected to keep refined product markets tight, supporting stronger margins for U.S. refiners. Robust jet fuel demand and lower product inventories further reinforce favorable market conditions. The company also sources most of its crude from Canada, the United States and Latin America, limiting Middle East supply risks. However, the sharp increase in commodity prices had a significant downside. In the first quarter of 2026, Phillips 66 reported $839 million in pre-tax mark-to-market losses on its short derivative positions, including $396 million in its Refining business. The company explained that these hedging losses were linked to its physical inventory. While rising prices increased the value of the inventories, that gain was not recorded at the same time because of the LIFO (last in, first out) accounting method, creating a temporary mismatch in reported earnings.
The Zacks Rundown on Marathon PetroleumShares of Marathon Petroleum displayed a staggering rally of 72.7% in the past six months, compared with the Oil/Energy sector’s gain of 17.2%.
Image Source: Zacks Investment Research
From a valuation perspective — in terms of forward price-to-sales ratio — MPC is trading at a discount of 0.64X compared with the industry average of 1.34X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MPC’s 2026 earnings is pegged at $33 per share, indicating 208.4% year-over-year growth.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
(We are reissuing this article to correct a mistake. The original article, issued on July 15, 2026, should no longer be relied upon.)
Phillips 66 (PSX - Free Report) closed at $196.16 in the latest trading session, marking a -2.63% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.62%.
Heading into today, shares of the oil refiner had gained 17.12% over the past month, outpacing the Oils-Energy sector's loss of 1.03% and the S&P 500's gain of 1.61%.
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 August 5, 2026. The company is forecasted to report an EPS of $7.44, showcasing a 212.61% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $36.12 billion, showing a 7.76% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $19.84 per share and revenue of $146.24 billion, which would represent changes of +208.07% and +7.09%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 9.46% higher. At present, Phillips 66 boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Phillips 66 is holding a Forward P/E ratio of 10.15. For comparison, its industry has an average Forward P/E of 9.41, which means Phillips 66 is trading at a premium to the group.
Investors should also note that PSX has a PEG ratio of 0.26 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.37 based on yesterday's closing prices.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Key Takeaways ExxonMobil's Permian growth and low shut-in prices support cash flow with WTI near $80 per barrel.Phillips 66 faces higher refining costs, but midstream and chemicals help cushion volatility.ExxonMobil trades below Phillips 66 on EV/EBITDA, yet investors are urged not to rush into either stock. Exxon Mobil Corporation (XOM - Free Report) and Phillips 66 (PSX - Free Report) are two energy giants that investors interested in the oil-energy sector may want to consider, even as another escalation in U.S.-Iran tensions has heightened volatility across the energy markets.
To have an idea of how both stocks have behaved in the past year, ExxonMobil has gained 29.3%, underperforming PSX’s 62.9% surge. Since the pricing chart does not represent the final picture before concluding on investment decisions, let’s delve into both stocks’ business fundamentals.
One-Year Price Chart
Image Source: Zacks Investment Research
Oil Hovers Around $80: Can XOM’s Upstream Business Thrive?ExxonMobil has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.
Let’s delve a little deeper into whether operating in the Permian is still profitable for the large integrated energy giant. According to the data from the Federal Reserve Bank of Dallas, the shut-in price for existing wells in the Midland, a sub-basin of the Permian, is $42 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $34 per barrel.
Image Source: Federal Reserve Bank of Dallas
With West Texas Intermediate (“WTI”) crude oil hovering around the $80 per-barrel mark, significantly higher than the shut-in prices, it makes sense for XOM to continue production in the wells and generate cash flows. On the first-quarter earnings call, XOM mentioned that it is staying aligned with its plan of growing its production in the most prolific basin to 1.8 million oil-equivalent barrels this year.
Is High Oil a Dampener for Phillips 66?The high price of oil is not in favor of PSX’s refining business. This is because refiners process crude oil to produce final products like gasoline, jet fuel and others. Hence, with the increase in crude price, their input costs are also surging, in turn affecting the bottom line.
However, investors should also consider the resilient business model of PSX. 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 significant capital for 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.
XOM or PSX: Which is a Better Stock?Considering the valuation snapshot, it has become evident that ExxonMobil is currently trading at a discount compared with PSX. This is reflected in the fact that XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.61X, below PSX’s 14.01X.
Image Source: Zacks Investment Research
This means investors are willing to pay a premium for PSX relative to XOM. However, investors shouldn’t rush to bet on either of the stocks now since commodity prices and their trend are now highly difficult to predict, considering the ongoing conflicts between the United States and Iran.
However, those who have already invested in XOM and PSX should stay invested. Both XOM and PSX currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Phillips 66 leverages access to low-cost crude from the Permian Basin, Canada and other regions.Phillips 66 targets controllable costs of $5.50 per barrel to further optimize refining margins.Rising Canadian crude supply and global fuel demand support PSX's long-term earnings and cash flow growth. The refineries of Phillips 66 (PSX - Free Report) are connected to the Permian Basin, Canada and other key production regions, ensuring access to competitively priced feedstocks. Its strategically located refineries serve both domestic and export markets, enabling the company to capitalize on strong product demand. Consequently, PSX is well-positioned to maximize refining margins through its integrated network and access to low-cost crude.
Phillips 66 has maintained crude utilization rates above industry averages for three years and consistently delivered an 87% clean product yield. The company's refineries process a high proportion of medium and heavy crudes, while retaining feedstock flexibility to exploit widening price differentials. By targeting adjusted controllable costs of $5.50 per barrel, management aims to drive margin optimization. Every $1 improvement in refining market indicators could generate $700 million in incremental EBITDA for PSX.
Favorable macroeconomic trends support PSX’s long-term financial performance. Canada's crude production is projected to rise steadily through 2030, providing a larger, more reliable supply of affordable feedstock. Simultaneously, global transportation fuel demand, led by jet fuel, diesel and gasoline, is expected to increase from 1.3 million barrels per day in 2027 to 2.4 million barrels per day by 2030. Together, abundant North American supplies and rising fuel demand will boost refinery utilization, strengthen refining margins, and drive long-term earnings and cash flow growth for Phillips 66.
VLO & MPC Gain From Favorable Refining Fundamentals
Beside Phillips 66, several U.S. refiners like Valero Energy Corporation (VLO - Free Report) and Marathon Petroleum Corporation (MPC - Free Report) are also benefiting from favorable refining fundamentals and are expected to remain well-positioned over the next few years.
Valero operates 14 high-complexity refineries with approximately 3 million barrels per day of throughput capacity. The leading refiner benefits from its highly complex Gulf Coast refineries and strong export capabilities. VLO reaches consumers through a robust retail footprint of around 7,000 branded outlets.
Marathon Petroleum benefits from its integrated refining and midstream network, which includes 16 refineries located across the West Coast, Gulf Coast and Mid-Continent regions of the United States. The company has a combined crude processing capacity of about 3 million barrels per day. In the first quarter of 2026, MPC’s refining flexibility and high utilization rates unlocked stronger refining profits.
PSX’s Price Performance, Valuation & EstimatesPhillips 66 shares have gained 53.7% over the past year compared with the industry’s 41.1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, PSX trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 13.84X. This is above the broader industry average of 5.73X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PSX's second-quarter 2026 earnings and 2026 earnings has seen upward revisions over the past seven days. Meanwhile, estimates for third-quarter 2026 have seen upward revisions.
Image Source: Zacks Investment Research
PSX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
US gasoline prices spent the spring of 2026 on a rollercoaster driven by Middle East supply disruptions. The FRED weekly regular gasoline series peaked at $4.50 per gallon on May 11 before easing to $3.78 by July 6, just ahead of the July Fourth holiday. Prices edged back up to about $3.85 the following week, and even after the pullback, they remained elevated, sitting around the 72nd percentile of their trailing 52-week range. For energy stocks, that keeps the setup constructive without looking overheated: consumers got some relief at the pump, but with Middle East tensions on again, off again, gasoline prices are still volatile enough to support margins across parts of the refining and integrated oil trade.
1. Valero Energy (VLO) Valero Energy (NYSE:VLO | VLO Price Prediction) is the purest bet on wider crack spreads. As a stand-alone refiner, gasoline and distillate margin expansion can flow quickly to earnings. Refining is a bright spot. Q1 2026 refining operating income swung to $1.8 billion from a $530 million loss a year earlier, and US Gulf Coast distillate margins jumped to $27.60/bbl versus $16.69/bbl in Q1 2025. EPS of $4.22 beat the $3.16 consensus.
On the earnings call, Valero COO Gary Simmons flagged “distillate inventories at five-year lows” and US product exports up 470,000 barrels a day year over year as factors helping keep crack spreads wide. VLO shares are up 81.9% year to date, trading at a forward P/E of 10.
Risk: the idled Benicia refinery and a March fire in the diesel hydrotreater at Port Arthur.
2. Phillips 66 (PSX) Phillips 66 (NYSE:PSX) captures refining upside alongside a midstream fee stream that softens volatility. Worldwide realized refining margins expanded to $10.11/bbl in Q1 2026 versus $6.81/bbl a year earlier, and adjusted EBITDA hit $1.27 billion versus $736 million in Q1 2025. Adjusted Q1 EPS of $0.49 handily beat the -$0.39 consensus, though $839 million in mark-to-market derivative losses masked the physical margin strength.
CEO Mark Lashier said the firm is positioned to “navigate market volatility due to our integrated business and strength of our balance sheet.”
Shares are up 55.0% year to date. Debt-to-cap climbed to 48% from 39% after the WRB and Lindsey acquisitions, so leverage is the offset to margin upside.
3. Exxon Mobil (XOM) Exxon Mobil (NYSE:XOM) benefits at both ends of the barrel: upstream realizations and refining crack spreads. Underlying Q1 earnings hit $8.8 billion excluding some items versus $7.58 billion a year earlier, with the Energy Products segment alone delivering $2.8 billion excluding certain items, up $2 billion year over year. Production reached 4.6 million oil-equivalent bpd.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Exxon Mobil didn't make the cut. Grab the names FREE today.
CEO Darren Woods warned “there is more to come if the Strait remains closed.” Golden Pass LNG Train 1 shipped its first cargo in April, adding roughly 5% to US LNG exports versus 2025.
Shares are up 20.3% year to date with a 2.99% dividend yield backed by 43 straight years of increases. This ranks alongside coverage in our Wealth Blueprint reports on dividend-anchored energy compounders.
4. Chevron (CVX) Chevron (NYSE:CVX) combines Permian scale with the newly integrated Hess assets. Worldwide production hit 3,858 MBOED, up 15% year over year, and US output topped 2 million bpd for a third straight quarter. Q1 adjusted earnings of $1.41 per diluted share beat the $0.97 estimate, though $2.9 billion in unfavorable hedging results weighed on GAAP results. CEO Mike Wirth is expanding equity crude into refineries to over 40% in Asia and north of 50% in the US, which could deliver a structural margin lift.
CVX YTD return is 19.4%, with a 3.9% dividend yield and 39 consecutive annual hikes.
5. ConocoPhillips (COP) ConocoPhillips (NYSE:COP) is the pure upstream play with no refining hedge, giving it the cleanest crude and natural gas price sensitivity. Henry Hub averaged $5.05/MMBTU in Q1 2026 versus $3.65 a year earlier, lifting Q1 adjusted EPS to $1.89 versus a $1.69 estimate. Total realized price was $50.36/BOE. Marathon Oil integration is delivering over $1 billion in run-rate synergies, and management targets $7 billion in incremental free cash flow by 2029.
COP shares are up 18.6% year to date. The 2026 production guidance excludes Qatar due to Middle East uncertainty, leaving geopolitics as the key risk.
Conclusion The common thread is supply tightness: The EIA estimates that global oil inventories fell by an average of 5.1 million bpd in Q2 2026 and are expected to drop by another 2.2 million bpd in Q3, even as Middle East production and exports recover. Brent implied volatility has averaged 78% since the conflict began. Refiners with heavy sour flexibility (VLO, PSX) capture the widest crack spreads, integrated majors (XOM, CVX) monetize both ends, and COP offers the highest upstream beta. The counter-risk is speed of resolution: WTI pulled back 26.2% over the past month to below $70/barrel, before its latest rally, a reminder that geopolitical premiums can compress as quickly as they expand.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Exxon Mobil didn't make the cut. Grab the names FREE today.
Kevin J. Mitchell, Exec. VP and CFO of Phillips 66 (PSX +5.27%), reported a sale of 11,021 shares on July 9, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$2.1 millionShares sold11,021Post-transaction shares (directly held)97,376Post-transaction value$18.48 millionKey questionsWhat was the mechanism and timing of this transaction?
The CFO executed an exercise of 11,021 options at a strike price of $94.97 and immediately sold the shares at a weighted average price of $190.03. This activity was automated under a Rule 10b5-1 trading plan adopted on November 21, 2025, which allows insiders to execute pre-planned trades to diversify holdings.How does this disposition affect the executive's total equity exposure?
The transaction reduced Kevin J. Mitchell's direct common stock holdings by 10%. Following the sale, he retains 97,376 shares of common stock, which includes 31,849 Restricted Stock Units that settle for shares on a 1-for-1 basis, along with 2,050 additional derivative securities.What is the market context for this sale?
The transaction occurred after the stock delivered a 45% return over the 12 months ending July 9. Based on the July 10, 2026 market close of $188.36, the CFO's remaining direct equity position is valued at approximately $18.3 million.Company OverviewMetricValueShare Price (as of market close 2026-07-10)$188.36Market Capitalization$75.5 billionRevenue (TTM)$134.5 billionNet Income (TTM)$4.1 billionCompany SnapshotPhillips 66 operates a diversified energy business spanning midstream infrastructure, refining, chemicals, and marketing & specialties segments, generating revenue through crude oil processing, petroleum product distribution, energy commodity transportation, and specialty chemical production.The company generates earnings through integrated operations that combine capital-intensive refining and logistics assets with downstream chemical manufacturing and marketing activities, capturing value across the energy value chain from feedstock processing to end-market distribution.Phillips 66 serves a broad customer base including petroleum refiners, chemical manufacturers, transportation and logistics operators, and industrial end-users requiring refined products, specialty chemicals, and energy infrastructure services.Phillips 66 is a diversified energy company with a $75.5 billion market capitalization, positioning it as a significant integrated player in the energy sector. The company's competitive advantage derives from its vertically integrated business model spanning midstream logistics, refining operations, and specialty chemicals, enabling operational synergies and margin capture across multiple energy value chain segments. With 13,200 employees and a strategic focus on both traditional energy infrastructure and specialty chemical markets, Phillips 66 maintains a balanced portfolio approach to energy sector exposure.
What this transaction means for investorsThis sale isn’t small, at roughly 10% of direct common stock holdings, but it still ultimately reads like a routine, well-structured cash-out and not a bet against the stock. Mitchell exercised options struck at $94.97 and sold at $190.03 the same day, capturing a spread of nearly $95 a share under a plan he set eight months earlier.
Meanwhile, the company’s latest results give some room to hold the rest. In the first quarter, Phillips 66 surprised a Street that had braced for a loss, posting adjusted earnings of $0.49 per share as realized refining margins hit $10.11 with crude utilization at roughly 95%. Management guided to low-to-mid 90% refining utilization for the second quarter.
For long-term investors, the insider sale is essentially background noise. The real questions are whether refining margins hold, whether the debt-reduction and asset-sale plan stays on track, and how the activist pressure from Elliott reshapes the portfolio after some recent board changes. The firm reports second-quarter earnings on August 5.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Phillips 66. The Motley Fool has a disclosure policy.
Americké trhy vstupují do nového týdne pod tíhou střelby v Hormuzském průlivu, kde došlo k oboustrannému porušení příměří. Na úbytě dnes tedy byly růstové tituly v čele s technologickým sektorem. Dařilo se energetickým společnostem díky rostoucí ceně ropy.
Index S&P 500 -0,78 % na 7516,68 b.
Index Dow Jones -0,26 % na 52498,82 b.
Index Nasdaq Composite -1,55 % na 25,873,18 b.
Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +3,2 % Informační technologie -2,1 % Utility +0,7 % Sektor komunikací -1 % Finanční sektor +0,6 % Průmysl -0,9 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna FactSet Research Systems (FDS) +6,5 % APPLVN CRP A O (APP) -13 % Gartner (IT) +6,1 % SANDISK CORP O (SNDK) -13 % Intuit (INTU) +5,4 % MRVL TCHNLGY O (MRVL) -7,8 % Valero Energy (VLO) +5,4 % Oracle (ORCL) -6,5 % Phillips 66 (PSX) +5,3 % Intel (INTC) -6,1 % Zdroj: Reuters
Phillips 66 (PSX - Free Report) ended the recent trading session at $189.82, demonstrating a +1.07% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.81%. Elsewhere, the Dow saw an upswing of 0.27%, while the tech-heavy Nasdaq appreciated by 1.3%.
The stock of oil refiner has risen by 3.35% in the past month, leading the Oils-Energy sector's loss of 3.61% and the S&P 500's gain of 1.13%.
The upcoming earnings release of Phillips 66 will be of great interest to investors. The company's earnings report is expected on August 5, 2026. The company is predicted to post an EPS of $6.99, indicating a 193.7% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $36.91 billion, indicating a 10.1% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.27 per share and a revenue of $146.18 billion, representing changes of +199.22% and +7.04%, respectively, from the prior year.
Any recent changes to analyst estimates for Phillips 66 should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 9.42% higher within the past month. As of now, Phillips 66 holds a Zacks Rank of #3 (Hold).
In terms of valuation, Phillips 66 is currently trading at a Forward P/E ratio of 9.75. For comparison, its industry has an average Forward P/E of 9.75, which means Phillips 66 is trading at no noticeable deviation to the group.
It's also important to note that PSX currently trades at a PEG ratio of 0.25. 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 Oil and Gas - Refining and Marketing industry had an average PEG ratio of 0.38 as trading concluded yesterday.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Luke Lango highlights AI’s toll roads… Brian Hunt flags Brazil’s overlooked AI angle… Louis Navellier’s refiner play amid Mideast turmoil… As I write on Thursday morning, the biggest headline is that President Trump says Iran called “a little while ago” wanting to make a deal “so badly” – just hours after a second night of U.S. strikes.
But there are plenty of other stories…
South Korean memory-chip maker SK Hynix – one of the world’s most recently minted trillion-dollar companies – is preparing for its $28 billion American IPO tomorrow. Demand is running roughly seven times the available shares, a loud signal for the AI memory trade.
Meanwhile, on the economic front, this morning’s initial jobless claims came in at a seasonally adjusted 215,000, beating forecasts and down from the prior week. It’s another sign the labor market is holding steady – and a data point that Fed Chair Kevin Warsh will factor in.
We could spend this Digest chasing any one of those threads. Instead, we’re letting them take a backseat for a different purpose…
Putting some money in your pocket.
Today, let’s look at three investment ideas – straight from three of our sharpest analysts.
The first is a straightforward AI play from Luke Lango – built for when the AI trade’s current multiweek drawdown eventually gives way to its next leg higher.
The second is a more conservative way to ride that same AI wave, courtesy of Brian Hunt – and it comes from a corner of the market most investors aren’t watching.
And the third is for AI-weary investors who just need a break from all-things-tech and its recent volatility. It’s a trade from legendary investor Louis Navellier, built around one of the more overlooked side effects of the conflict in the Middle East.
Let’s get into it.
Luke Lango: “AI just joined the payroll” Luke, our tech and innovation expert and editor of Innovation Investor, is flagging a shift he thinks most investors are underestimating. AI is turning from a tool people use into labor companies deploy.
This is the shift to “agentic” AI that we’ve been tracking here in the Digest for months.
To illustrate, Luke highlights Kalshi, the prediction-market platform. It has an internal AI agent named “Harrison” doing work that looks like analyst labor – tracking news, monitoring competitors, drafting contract language, and helping resolve markets.
Tying into the investment opportunities, here’s Luke to explain why that matters for the compute build-out:
An AI agent is different.
Give it an objective, and it goes to work — planning, executing, checking its own output, calling tools, querying databases, revising, and iterating until the task is complete.
That continuous loop consumes inference compute on a vastly larger scale.
This reference to “inference compute” is where we find opportunity.
Luke points to estimates from Gartner that agentic AI workflows consume 5X to 30X more tokens per task than single-shot generative AI queries. Meanwhile, Goldman Sachs projects that monthly token counts for agentic AI could reach roughly 120 quadrillion by 2030.
Luke’s takeaway for investors:
Follow the compute, and you’ll find the trade.
It doesn’t matter which app wins, which enterprise deploys the most agents, or which model — GPT, Claude, Gemini, Llama — powers them.
What matters is that every agent is sending traffic through the same physical infrastructure stack. And that stack is finite, expensive to build, and currently being stretched to its limits.
Each layer collects a different kind of toll.
Luke breaks the “toll roads” into several categories – accelerators like Nvidia (NVDA), networking and custom silicon such as Credo (CRDO), memory like SanDisk (SNDK), servers and power such as Dell (DELL), optical connectivity like Coherent (COHR), and storage.
For our purpose today, I’ll highlight one of Luke’s “storage” stocks: Everpure (P).
AI agents need fast retrieval from massive datasets, and Luke says storage is where that need shows up first. Here he is with more:
Everpure in particular has been gaining strength beneath the surface.
In Q1 of FY2027, product revenue surged 55%, while subscription services accounted for 45% of total revenue.
Operating profit jumped over 90% year-over-year to $159 million.
His broader point is that as agentic workloads scale, storage isn’t a side character in the AI story; it’s a structural beneficiary. It quietly compounds while the market’s attention stays fixed on chips.
Luke’s closing thought is interesting. While we’ve written many Digests about the economic incentive for companies to shift from a human workforce to an agentic workforce to benefit from lower labor costs, Luke spots a parallel:
Once AI joins the payroll, compute becomes the new labor cost.
The companies supplying the accelerators, networking, memory, servers, storage, power, cooling, and connectivity behind that shift are not side bets on AI. They are the trade.
It’ll be interesting to watch how pricy this new compute “labor cost” becomes – and how that shapes the agentic AI trade.
In the meantime, for the specific AI stocks that Luke officially recommends in Innovation Investor, click here to learn more.
Brian Hunt: Brazil is the AI trade nobody’s talking about Following Luke’s look at the infrastructure layer behind AI agents, our next opportunity comes from Brian, editor of the free daily newsletter Money & Megatrends – and it takes the AI infrastructure story somewhere unexpected…
Brazil.
In Tuesday’s issue of Money & Megatrends, Brian argues the iShares MSCI Brazil ETF (EWZ) is set up to keep climbing, and that AI’s global infrastructure boom is part of the reason why.
Brazil, he notes, is a commodity superpower – and commodities are the backbone of the AI buildout that most investors overlook.
Here he is to explain:
Brazil is a beneficiary of the historic AI infrastructure spending boom…
Brazil’s huge network of rivers also makes it a giant producer of hydroelectric power. This makes it an attractive destination for power-hungry AI data centers.
Brazil also has large reserves of rare earth elements. Demand for these raw materials is soaring thanks to growing demand in AI infrastructure, robotics, and defense tech.
Brian’s been tracking the price action for months. He first flagged Brazilian stocks back in September, and here’s how that call played out:
Soon after my September note, Brazilian stocks – in the form of the iShares Brazil ETF (EWZ) – surged 38% in less than seven months.
It then experienced a natural, healthy bull market correction from mid-April to mid-June.
Now, he says, that correction is over as EWZ looks poised to continue its uptrend.
It’s a reminder that the AI trade isn’t confined to chips and data centers. Somewhere down the supply chain, it runs through rare earths, hydropower, and the raw materials that make the whole buildout physically possible – and Brian thinks Brazil sits right in the middle of that chain.
If you like EWZ, Brian writes Money & Megatrends every day the market is open, highlighting these kinds of opportunities before they become front-page news – and it’s 100% free.
His issues are loaded with trend analysis, actionable advice, and loads of specific tickers. You can sign up right here.
Louis Navellier: A trade that has nothing to do with AI To round out today’s lineup, let’s turn to Louis, editor of Growth Investor. Two weeks ago, he recommended a trade that’s aging quite well – U.S. oil refiners.
Louis made this call while the ceasefire was still holding. Now that it’s collapsing, the shortages and refining-margin tailwind he flagged look even more likely to persist.
Backing up, volatile crude prices usually squeeze energy companies from both directions…
Rising crude hits refiners’ feedstock costs – the price they pay for the crude oil they’re about to turn into diesel and jet fuel – before they can pass the increase along. Falling crude does the opposite damage – it marks down the value of the crude oil they’re already holding in storage and pipelines.
But right now, refiners are catching a powerful offset: some of the strongest refining margins in years.
Here’s Louis to explain why:
The conflict in the Middle East has created shortages and increased demand for U.S. energy products.
That has pushed refiners to ramp up production of diesel, jet fuel and other petroleum products – and helped drive some of the strongest refining margins in years.
The numbers back him up. In the first quarter, the industry benchmark 3-2-1 crack spread – essentially a snapshot of refiner profitability – jumped 73% on average.
One of the companies riding that tailwind – Louis’ pick – is Phillips 66 (PSX), a diversified energy giant that touches nearly every part of the fuel supply chain. It boasts 12 U.S. refineries, more than 70,000 miles of pipeline, thousands of branded and joint-venture fuel outlets, and a growing renewable fuels business.
That diversification showed up directly in the company’s first-quarter results. Louis highlights how Phillips 66 posted adjusted earnings of $200 million, or $0.49 per share – crushing Wall Street’s estimate for a loss of $0.39 per share.
Analysts have since revised their consensus estimate 60% higher over the past three months, and they now expect second-quarter earnings to soar 179% year-over-year, to $6.64 per share, compared with $2.38 per share in the same quarter a year ago.
Now, Louis made this recommendation on June 26, and his Growth Investor subscribers are already up 11%. That’s pushed PSX above his buy-up-to price of $180 – the stock trades around $189 as I write.
But keep watching here. Any genuine de-escalation in the Middle East would likely ease the shortages driving refining margins higher, which could pull PSX back down – potentially back into Louis’ buy range.
Either way, PSX is a reminder that AI isn’t the only game in town right now. Sometimes the more interesting opportunity is old-fashioned energy infrastructure, catching a tailwind from an entirely different story.
If you want more from Louis, he’s got his eyes on July 23 – exactly two weeks from today – when Q2 earnings kick in.
In his latest presentation, he dives into what his Precursor Intelligence system – or P.I. for short – is digging up right now. Louis designed it to help him identify where institutional money moves next, before the rest of Wall Street catches on. That’s the lens through which he’ll be positioning himself for Q2 earnings.
You can get more details right here – as well as several stocks his system says could be next in line as institutional money makes its next move.
Wrapping up No big headline analysis today – just three ideas to consider from some of our sharpest analysts…
An AI infrastructure trade built for the rebound, A conservative AI angle running through Brazil, And an energy play riding a tailwind that has nothing to do with AI at all. Given our analysts’ respective track records, each is worth a good look if you’re thinking about putting money to work today.
HOUSTON--(BUSINESS WIRE)--The board of directors of Phillips 66 (NYSE: PSX) has declared a quarterly dividend of $1.27 per share on Phillips 66 common stock. The dividend is payable on Sept. 1, 2026, to shareholders of record as of the close of business on Aug. 18, 2026.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, TX, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
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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 B.
Momentum investors should take note of this Oils-Energy stock. PSX has a Momentum Style Score of A, and shares are up 3.4% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.91 to $19.27 per share. PSX boasts an average earnings surprise of +67.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PSX should be on investors' short list.
Key Takeaways Phillips 66 is likely to benefit as WTI stays below $75, keeping feedstock costs attractive.Renewed Middle East tensions have supported oil prices, but traders remain cautious on Hormuz risks.Softer crude prices may also aid Marathon Petroleum and Valero Energy through lower input costs. West Texas Intermediate (“WTI”) oil is currently trading below $75 per barrel, according to data from Oilprice.com, significantly down from the more than $100 per barrel mark reached in May this year. However, renewed tensions in the Middle East, following President Donald Trump's statement that the ceasefire agreement with Iran is no longer in effect, are once again supporting oil prices.
Considering the uncertainty arising from the renewed tensions, with the United States and Iran having already exchanged new, intense attacks, and its impact on the flow of oil through the Strait of Hormuz, which is responsible for the flow of significant global oil volumes, traders are taking a cautious approach. Oil prices remaining significantly below the highs seen earlier this year are aiding refiners like Phillips 66 (PSX - Free Report) with relatively attractive feedstock costs.
In other words, PSX, a leading refining company, is now able to purchase oil at a lower cost, enabling the production of end products. Thus, Phillips 66, which generates significant margin from its refining activities, is likely to benefit from lower oil prices.
Will MPC & VLO Also Gain?Marathon Petroleum Corp. (MPC - Free Report) and Valero Energy Corporation (VLO - Free Report) are two other leading refining companies that are well poised to gain from the relatively softer crude prices.
MPC runs refining systems that are the largest in the United States. With high utilization of refineries, Marathon Petroleum is well-positioned to capture almost all of the available profitable opportunities.
For refiners like Valero Energy, the soft oil prices will also likely aid refining margins, as input costs are still lower.
Apart from this, investors should note that the global refining capacity is constrained and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests that transportation, freight, agriculture and industrial activity are still holding up. As a result, with higher refinery activity and constrained fuel supply, refining margins for refiners like VLO are quite strong.
PSX’s Price Performance, Valuation & EstimatesShares of PSX have gained 39.8% over the past year compared with the 34.1% improvement of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, PSX trades at a trailing 12-month enterprise value to EBITDA of 13.26X. This is above the broader industry average of 5.58X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PSX’s 2026 earnings has seen upward revisions over the past 30 days.
Image Source: Zacks Investment Research
PSX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Phillips 66 is up 39.5% in a year, beating the industry's 37.9% rise amid stronger fundamentals.Softer WTI oil prices may aid PSX's refining margins by lowering crude purchase costs.PSX's midstream and chemicals businesses add stability, while 2026 earnings estimates have risen. Phillips 66 (PSX - Free Report) has surged 39.5% over the past year, outperforming the 37.9% improvement of the composite stocks in the industry. Following the run-up, investors who are not invested in the stock might think it’s too late to bet on the stock right away. However, before concluding on this point, let’s analyze the large-cap stock’s fundamentals and the overall business environment.
Image Source: Zacks Investment Research
How Softer Oil Is Aiding Phillips 66's Refining SegmentWest Texas Intermediate (“WTI”) oil is currently trading below $70 per barrel, according to data from Oilprice.com, significantly down from the mark of more than $100 per barrel reached in May this year. Phillips 66, like Valero Energy Corporation (VLO - Free Report) and Par Pacific Holdings, Inc. (PARR - Free Report) , two other players belonging to the same space, is likely to gain from the softer crude pricing environment.
This is because PSX, a leading refining company, is now able to purchase oil at a lower cost, enabling the production of end products. Thus, Phillips 66, which generates significant margin from its refining activities, is likely to benefit from lower oil prices.
Resilient Business Model of PSXAlthough 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 significant capital for 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 the commodity price volatility to a great extent.
Phillips 66’s Positive Earnings Estimate RevisionsFor 2026, the leading refining player has witnessed upward earnings estimate revisions over the past seven days, as evident from the snapshot below. Likewise, Valero Energy and Par Pacific have also witnessed upward revisions for 2026 estimates over the same time frame.
Image Source: Zacks Investment Research
What to Do With the Stock?Now, turning to the valuation picture, it seems investors are willing to pay a premium for the stock, given the resilience of the large-cap refiner’s business model. It is to be noted that Phillips 66 is trading at a trailing 12-month EV/EBITDA multiple of 12.64x, which is higher than the broader industry average of 5.49x. Valero Energy and Par Pacific Holdings, two other refiners, are valued at 8.16x and 4.65x, respectively.
Image Source: Zacks Investment Research
Thus, PSX appears to be a compelling investment at current levels, supported by a favorable refining and midstream operating environment, as well as upward earnings estimate revisions that are being reflected in its premium valuation. Currently, the stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways PSX is likely to gain as sub-$70 WTI crude lowers input costs for producing refined products.Phillips 66's midstream and chemicals units help insulate it from commodity price volatility.PSX shares are up 38.6% over the past year, topping the industry's 33.9% gain. West Texas Intermediate (“WTI”) oil is currently trading below $70 per barrel, according to data from Oilprice.com, significantly lower than the more than $100 per barrel reached in May this year. Phillips 66 (PSX - Free Report) is likely to gain from the softer crude pricing environment. This is because PSX, a leading refining company, is now able to purchase oil at a lower cost, enabling the production of end products.
Although a leading refiner, PSX, unlike most of its refining peers, has diversified its business across midstream and chemicals. It is to be noted that the midstream business, by its very definition, is resilient since it 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, the large-cap stock is insulated from commodity price volatility to a great extent. Given the strength and resilience of its business model, Phillips 66 has significant room to continue its upward trajectory.
Will MPC & VLO Also Gain?Marathon Petroleum Corp. (MPC - Free Report) and Valero Energy Corporation (VLO - Free Report) are two other leading refining companies that are well poised to gain from falling crude prices and the tight refining capacities across the globe.
MPC runs refining systems that are the largest in the United States. With high utilization of refineries, Marathon Petroleum is well-positioned to capture almost all of the available profitable opportunities.
For refiners like Valero Energy, the considerable decline in oil prices will also likely increase refining margins, as input costs have fallen remarkably.
Apart from this, investors should note that the global refining capacity is constrained and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests transportation, freight, agriculture and industrial activity are still holding up. As a result, with higher refinery activities and constrained fuel supply, refining margins for refiners like VLO are quite strong.
PSX’s Price Performance, Valuation & EstimatesShares of PSX have gained 38.6% over the past year compared with the 33.9% improvement of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, PSX trades at a trailing 12-month enterprise value to EBITDA of 12.64X. This is above the broader industry average of 5.42X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PSX’s 2026 earnings has seen upward revisions over the past seven days.
Image Source: Zacks Investment Research
PSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Oil below $70 may create opportunities for refiners as crude costs ease from elevated levels.PSX may benefit from lower oil prices and a diversified model spanning midstream and chemicals.PARR's varied crude sources and Canadian heavy oil exposure may support its cost advantage. The oil-energy sector continues to be at the top of the major events capturing investors' attention. The market recently witnessed a significant fall in oil prices, thanks to encouraging comments from Qatar about progress in indirect negotiations between the United States and Iran that were concentrated mostly on the Strait of Hormuz, which is responsible for significant volumes of global oil supply. This pullback from elevated crude prices has been reshaping the energy landscape and creating opportunities for many companies in the sector.
It is noteworthy that two leading refiners, Phillips 66 (PSX - Free Report) and Par Pacific (PARR - Free Report) , have jumped 37.1% and 86.9%, respectively, over the past year. Can the recent developments aid the operations of the two energy players and help them sustain their momentum?
Image Source: Zacks Investment Research
Bet on 2 Refining Stocks Right Away: PSX, PARRWest Texas Intermediate (“WTI”) oil is currently trading below $70 per barrel, according to data from Oilprice.com, significantly lower than the more than $100 per barrel reached in May this year. Phillips 66, currently carrying a Zacks Rank #2 (Buy), is likely to gain from the softer crude pricing environment. This is because PSX, a leading refining company, is now able to purchase oil at a lower cost, enabling the production of end products.
Although a leading refiner, PSX, unlike most of its refining peers, has diversified its business across midstream and chemicals. It is to be noted that the midstream business, by its very definition, is resilient since it 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, the large-cap stock is insulated from commodity price volatility to a great extent. Given the strength and resilience of its business model, Phillips 66 has significant room to continue its upward trajectory.
While the lower oil price is a positive for refiners like Par Pacific, several other factors are aiding the company’s refining business that investors should keep in mind.
Instead of relying on a single source of crude, PARR has been depending on crude from a variety of sources, comprising U.S. inland oil fields, imported oil delivered by ship and Canadian heavy crude.
Notably, a significant portion of crude oil sources is waterborne, while 22% consists of Canadian heavy oil. While exposed to multiple sources, Par Pacific has the option to switch if the price of one crude oil type rises.
Additionally, having exposure to Canadian heavy oil, which is cheaper than lighter crude, the #2 Ranked Par Pacific is likely to have been enjoying a cost advantage. In other words, the refining player has been capable of using lower-priced fuel to produce high-value end products, giving it an edge over other refiners and helping it continue its upward trajectory. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Phillips 66 and Halliburton have surged 33.7% and 56.4%, respectively, beating the broader oil-energy sector.Phillips 66 may benefit from lower crude costs while its midstream and chemicals arms add resilience.Halliburton could gain as lower oil prices support upstream activity and demand for its services. The United States and Iran had signed an interim deal last month that ended months of conflict and led to the resumption of oil flows through the Strait of Hormuz. With both countries having entered a 60-day negotiation period to reach a permanent peace deal, commodity prices have retreated from their recent highs.
Some investors may assume that energy companies’ prospects will weaken from here. But the reality appears to be quite different. Two large-cap energy players, Phillips 66 (PSX - Free Report) and Halliburton (HAL - Free Report) , have surged 33.7% and 56.4%, respectively, over the past year, outperforming the broader oil-energy sector. Can this rally continue? Let’s take a closer look.
2 Energy Stocks in the Spotlight: PSX & HALWest Texas Intermediate (“WTI”) oil is currently trading below $70 per barrel, according to data from Oilprice.com, significantly lower than the more than $100 per barrel reached in May this year. Phillips 66, currently carrying a Zacks Rank #2 (Buy), is likely to gain from the softer crude pricing environment. This is because PSX, a leading refining company, is now able to purchase oil at a lower cost, enabling the production of end products.
Although a leading refiner, PSX, unlike most of its refining peers, has diversified its business across midstream and chemicals. It is to be noted that the midstream business, by its very definition, is resilient since it 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, the large-cap stock is insulated from commodity price volatility to a great extent. Given the strength and resilience of its business model, Phillips 66 has significant room to continue its upward trajectory.
Halliburton is a leading oilfield service player providing technologies, products and services to the exploration and production companies across the entire well life cycle. The current oil prices, which are much lower than the shut-in prices, are likely to aid upstream activities, which are expected to have a positive impact on demand for the #2 Ranked Halliburton’s services encompassing Completion and Production & Drilling and Evaluation. The large-cap oilfield service company is thus well-positioned to sustain its upward momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
Zacks Premium also includes 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.
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 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 like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
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.
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 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 #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 9.29; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.67 to $18.21 per share. PSX boasts an average earnings surprise of +67.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PSX should be on investors' short list.
By securing shares in elite dividend payers, long-term investors can set up a powerful compounding machine that creates a robust portfolio foundation. If you're hunting for top dividend stocks to buy and hold for the long run, here are two names to consider.
1. Bank of America Bank of America (BAC 1.30%) has paid regular dividends to its shareholders for 38 consecutive years. Its current yield hovers around 2% The institution remains a key pillar in the global financial ecosystem.
The bank benefits from a massive deposit base and a digital consumer banking network that is practically impossible for smaller competitors to replicate. Because its commercial and consumer banking services are woven deeply into the fabric of the global economy, the business generates reliable cash flows no matter what the broader economy is doing.
Image source: Getty Images.
Bank of America's business model balances interest-earning retail assets with lucrative, fee-generating divisions like global wealth management, trading, and investment banking.
When interest rates are higher for longer, a large chunk of Bank of America's fixed-rate loans, securities, and bonds mature and reprice into higher, current-market yields. Higher rates initially squeeze margins because the bank has to pay customers more to keep their deposits.
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Periods of high or fluctuating interest rates drive high macroeconomic volatility. This volatility spikes client activity, boosting Bank of America's global markets and equities trading divisions, which offsets lending margin compression. The bank also benefits from expanding assets under management and rising advisory fees in its global and investment management division when markets are active. Businesses and everyday consumers might pull back on speculative borrowing during tight credit environments, but they continue relying heavily on the institution's standard transactional, clearing, and asset management platforms.
Bank of America's recent financial performance showed a strong $30.3 billion in quarterly revenue alongside $8.6 billion in net income. Not only were those increases of 7% and 17%, respectively, compared to the previous year, but they also marked the bank's strongest quarterly earnings performance in nearly 20 years. For long-term investors looking to anchor their portfolios, now could be an ideal time to accumulate shares of this dividend payer.
2. Chevron Chevron (CVX 0.91%) certainly stands out as an elite income generator, boasting an exceptionally attractive dividend yield of around 4% at the time of this writing. Chevron has increased its dividend for 39 consecutive years.
Rather than operating purely as a speculative explorer, Chevron controls a massive, fully integrated energy ecosystem that covers everything from upstream oil and gas extraction to downstream refining and chemicals. This diversified model generates immense free cash flow, allowing the company to support its aggressive shareholder return programs through all phases of the commodity cycle.
Chevron owns and operates wholly owned and joint-venture refineries that convert raw crude into finished petroleum products like gasoline, aviation fuel, and lubricants. It also operates substantial petrochemical ventures, such as the Chevron Phillips Chemical (CPChem) joint venture with Phillips 66 (PSX 2.58%), to manufacture plastics and additives.
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Because Chevron runs an integrated global model, it enjoys a built-in balance sheet cushion that pure-play drilling companies completely miss out on. When crude oil prices face temporary market corrections, the company's downstream refining margins often expand due to lower input costs, balancing out the bottom line.
This scale gives the energy company access to an exceptional asset portfolio, including low-cost production acreage in the Permian Basin and premium global liquefied natural gas projects. It uses this diversified cash engine to maintain tight control over capital expenditures. This built-in hedge means the company can comfortably sustain its multidecade track record of annual dividend increases.
In the latest trading session, Phillips 66 (PSX - Free Report) closed at $171.76, marking a +1.85% move from the previous day. This change outpaced the S&P 500's 0.01% loss on the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%.
Shares of the oil refiner witnessed a loss of 3.43% over the previous month, beating the performance of the Oils-Energy sector with its loss of 9.23%, and underperforming the S&P 500's loss of 1.4%.
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 August 5, 2026. It is anticipated that the company will report an EPS of $6.12, marking a 157.14% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $36.91 billion, showing a 10.1% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.22 per share and a revenue of $146.18 billion, signifying shifts of +182.92% and +7.04%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 3.44% rise in the Zacks Consensus EPS estimate. Phillips 66 is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Phillips 66 is currently being traded at a Forward P/E ratio of 9.26. This valuation marks a premium compared to its industry average Forward P/E of 8.64.
It is also worth noting that PSX currently has a PEG ratio of 0.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.35 based on yesterday's closing prices.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 20% 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.
Key Takeaways Phillips 66 may benefit as softer crude prices lower oil purchase costs for refining operations.PSX's midstream and chemicals businesses help insulate it from commodity price volatility.Nabors expects Lower 48 rig day rates to rise to the mid-$30,000 range through 2027. The oil-energy sector remains in the spotlight after the United States and Iran reached an interim deal last week. Media reports suggest that oil flows through the Strait of Hormuz are recovering, with shipping activity picking up again. Oil prices are declining significantly, altering the business landscape of energy companies.
The price of oil is still significantly higher than the shut-in prices of the wells in the United States that are not new but existing. According to a report from the Federal Reserve Bank of Dallas, the shut-in prices are lower than $50 per barrel in the major resources in the domestic market. Considering the backdrop, should investors bet on Phillips 66 (PSX - Free Report) and Nabors Industries Ltd. (NBR - Free Report) right away? Let’s delve deeper.
Image Source: Federal Reserve Bank of Dallas
2 Energy Stocks in the Spotlight: PSX & NBRWest Texas Intermediate (“WTI”) oil is currently trading just below $70 per barrel, according to data from Oilprice.com, significantly lower than the more than $100 per barrel reached in May this year. Phillips 66, currently carrying a Zacks Rank #2 (Buy), is likely to gain from the softer crude pricing environment. This is because PSX, a leading refining company, is now able to purchase oil at a lower cost, enabling the production of end products.
Although a leading refiner, PSX, unlike most of its refining peers, has diversified its business across midstream and chemicals. It is to be noted that midstream business, by its very definition, is resilient since it 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 the commodity price volatility to a great extent.
Nabors Industries is a leading energy company known for providing drilling technology and services. In the Lower 48, NBR has a large land-rig footprint and exposure in the international market. The current oil prices, which are much lower than the shut-in prices, are likely backing exploration and production activities, which are expected to have a positive impact on demand for NBR’s drilling technology and services. On its first-quarter 2026 earnings call, the #2 Ranked company mentioned that in the Lower 48, it is expecting its rig day rates to rise to the mid-$30,000 range through 2027 from the low-$30,000 range. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Phillips 66 (PSX - Free Report) .
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.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
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.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed 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.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in PSX?Looking at the earnings estimate revisions for Phillips 66, the Zacks Consensus Estimate for the current year has increased 3.4% over the past month to $18.22.
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 #2 (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.
HOUSTON--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX) executive management will host a webcast at noon ET on Wednesday, Aug. 5, 2026, to discuss the company’s second-quarter 2026 financial results, which will be released earlier that day.
To access the webcast, go to the Events and Presentations section of the Phillips 66 Investors site, phillips66.com/investors. A replay of the webcast and a transcript will be available on the Events and Presentations page after the event.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Texas, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
Phillips 66 CEO Mark Lashier speaks at the Reuters Global Energy Forum in New York City, U.S., June 24, 2026. Julian Guideras/Handout via REUTERS Purchase Licensing Rights, opens new tab
CompaniesJune 24 (Reuters) - Phillips 66 (PSX.N), opens new tab CEO Mark Lashier said at the Reuters Global Energy Forum in New York on Wednesday that refining and petrochemical earnings face greater volatility due to uncertainty from disruptions in the Strait of Hormuz.
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Lashier added that the company has taken about $1 per barrel of cost out of its refining business and is targeting $5.50 per barrel, while costs in California are around $15 a barrel.
"We actually have improved our yield of high-value products for our refineries, and we've enhanced our utilization, running our refiners at higher rates as we've lowered the cost," he added.
Lashier noted that the company's significant investment in integration has paid off, allowing it to capitalize on market opportunities.
The company capitalized on high prices in California by moving refined products there when the state was dependent on costly Asian-linked supplies and also delivered North American crude to its East Coast refineries, which rely on the Atlantic basin, during a period of elevated oil prices.
Reporting by Pooja Menon in Bengaluru and Liz Hampton; Editing by Mark Porter
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Phillips 66 has navigated past material risks, such as the DAPL dispute, through strategic diversification. Current volatility, driven by geopolitical uncertainty like the Iranian situation, presents potential entry points for investors seeking value in PSX's diversified margin-driven model. PSX's commitment to an investment-grade credit rating underpins industry outperformance.
Oil prices are elevated and are likely to remain higher for the foreseeable future. While EIA officials predict a supply glut in 2027, it won’t happen for 12 months or more, if at all.
Near term, the supply looks tight. The Iran war disrupted energy markets in a historic fashion, not only impairing production and supply but also disrupting the balance between supply and end products. The takeaway is that crack spreads, the difference in input cost and realized revenue for oil refiners, are at historically high levels and driving robust cash flow for refiners.
Up more than 100% at its peak, crack spreads are hovering in the +100% year-over-year range as of mid-year. This situation is not expected to end soon, as oil stockpiles, production, and refining remain impaired. The release of ships from the Persian Gulf is good news, but the oil trapped in the tankers is insufficient to offset the damage. As it stands, the world is burning more oil than it is producing, and in the United States at least, fuel output is increasing while oil storage levels continue to decline.
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Globally, demand has shifted from the Persian Gulf and the Middle East to the United States, positioning U.S. operators for strength. Some of that demand will revert to its normal sources following the resolution of the Iran War, but not all of it. In this scenario, U.S. refiners are well-positioned to generate cash flow, pay dividends, and aggressively buy back shares.
Valero Energy: A Refining Cash Flow Machine With Buyback PowerValero Energy Today
VLO
Valero Energy
$237.26 -6.42 (-2.64%)
As of 09:32 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$130.78▼
$265.61Dividend Yield2.02%
P/E Ratio17.24
Price Target$245.59
Valero Energy NYSE: VLO isn’t exactly a pure play, as it has operations in biodiesel and ethanol, but it is as good as one. Crude refining accounts for approximately 90% of the business and is the core cash driver. Its advantage lies in its footprint, which is centered on the U.S. Gulf Coast.
This enables quick delivery from key Southwest markets to international buyers. Other advantages include its complex system, which enables multiple feedstocks, such as sour crude and WTI, and variable output to match market demands.
Highlights from the company's Q1 2026 period included better-than-expected revenue growth, earnings growth, and earnings per share (EPS) more than 3000 basis points above MarketBeat’s reported consensus. Cash flow was also significant at $1.3 billion, more than sufficient to cover the capital return. Capital returns included a 6% increase in dividends, yielding 2% at shares near $235, and share buybacks, which reduced the count by 5%. Looking ahead, the company can sustain a robust pace of share reduction even with crack spreads narrowing. The biggest risk is that the pace of share reduction slows.
Sell-side trends reveal support from this vector. Analysts, who drive both institutional and retail sentiment, have increased coverage, strengthened the Moderate Buy rating, and lifted price targets this year. The consensus of 21 views the market as fairly valued near $235, but the trend is upward, leading to the $290 range and fresh highs within the subsequent 12 months. Institutions, the visible action implied by analysts' trend, are equally bullish, with them owning nearly 80% of the stock and buying at a pace greater than $2-to-$1 this year.
Marathon Petroleum: Scale and DiversificationMarathon Petroleum Today
MPC
Marathon Petroleum
$241.54 -6.98 (-2.81%)
As of 09:32 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$158.00▼
$272.46Dividend Yield1.66%
P/E Ratio15.77
Price Target$272.94
Marathon Petroleum NYSE: MPC is the U.S.'s largest independent refiner, with operations in the central and southwestern regions. Its diversified business includes pipelines that connect critical oilfields in the interior to the Gulf Coast. Among its highlights is a disciplined approach to capital allocation that enables balance-sheet strength, business reinvestment, and capital returns.
Details from the company's Q1 release included better-than-expected growth and windfall margin. Adjusted EPS more than doubled the consensus forecast, reversing losses posted in the prior year’s quarter.
Marathon Petroleum’s dividend is worth more than 1.5% as of mid-2026. The payment is reliable at approximately 25% of the earnings forecast, and is backed by share buybacks. Share buybacks are aggressive, reducing the count by 5.7% on average over the trailing 12 months. Sell-side support is also solid, with 19 analysts rating it a consensus Moderate Buy, a double-digit upside forecast at consensus, rising price targets, and institutions accumulating.
Phillips 66: Dividends, Distribution Growth, and Share BuybacksPhillips 66 Today
$166.87 -3.47 (-2.04%)
As of 09:32 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$118.00▼
$190.61Dividend Yield3.04%
P/E Ratio16.44
Price Target$192.33
Phillips 66 NYSE: PSX is another diversified downstream operator with business centered on refining. Adjacent segments include chemicals, pipelines, natural gas, and marketing. Critical details include its group-leading dividend yield, approximately 3%, capacity for distribution increases, and share buybacks.
PSX buybacks aren’t as aggressive as those of some others, but they do provide leverage, reducing the count by an average of 1.46% over the trailing 12 months as of Q1. Looking ahead, growth is expected to be underpinned by demand and expansion plans.
Analyst trends are bullish, including increasing coverage, firming sentiment, and a Moderate Buy consensus among 22 tracked by MarketBeat. They forecast a double-digit upside at the midpoint target, sufficient to reach a fresh all-time high. Risks for PSX and other refiners include the potential for narrowing crack spreads. However, with spreads at historical highs, the industry can withstand the impact and sustain its capital return long into the future.
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, /PRNewswire/ -- Kanin Energy today announced plans to develop a 7-megawatt waste heat to power (WHP) facility at the Phillips 66 Mewbourn natural gas processing complex in Platteville, Colorado. The project represents an innovative collaboration that leverages industrial waste heat to generate onsite, baseload power, supporting plant reliability and long-term operational resilience while reducing the facility's environmental footprint.
The WHP system captures waste heat from gas compression turbines and converts it into reliable, lower-emissions intensity power for direct use at the Phillips 66 Mewbourn complex. This project is expected to lower long-term power costs and reduce greenhouse gas emissions. Construction is expected to begin later this year.
Under the project structure, Kanin Energy will develop, own, and operate the WHP facility, delivering a turnkey solution that enables Phillips 66 to unlock the value of its waste heat resources without upfront capital investment.
"We are excited to be working on this project with Phillips 66, a company that demonstrates a genuine commitment to innovation and continuous improvement at their operations. Helping industry unlock new value from their existing operations and save on energy costs is core to Kanin Energy's mission. This project with Phillips 66 is a strong example of the kind of collaboration that makes this vision a reality." said Janice Tran, CEO at Kanin Energy.
"This waste heat to power project at our Mewbourn plant is another example of how we are investing in innovative technologies that support safe, reliable operations and strengthen the long-term resilience of our system," said Michelle Hilger, Vice President, Phillips 66 Technical Services and Innovation. "It reflects our team's focus on continuous improvement and innovation as we look for new ways to enhance performance and reduce our environmental footprint."
About Kanin Energy
Kanin Energy is a technology-agnostic, developer, owner, and operator of industrial energy assets including Waste Heat to Power (WHP) and Combined Heat & Power (CHP). They bring expertise in designing, building, and operating power generation and thermal systems, structuring long-term offtake and interconnection agreements, as well as sourcing capital to finance major infrastructure projects for industrial operators. For more information, visit kaninenergy.com.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company's portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
Phillips 66 CEO Mark Lashier during a media event in Houston, Texas, U.S., March 26, 2024. REUTERS/Kaylee Greenlee Beal Purchase Licensing Rights, opens new tab
CompaniesJune 23 (Reuters) - U.S. refiner Phillips 66 (PSX.N), opens new tab CEO Mark Lashier said on Tuesday it would take time for crude supplies to clear through the Strait of Hormuz, as uncertainty remains around a return to normal shipping activity.
Passage through the Strait of Hormuz is continuing on a limited basis, easing immediate supply concerns and pushing crude prices lower. Meanwhile, energy companies are monitoring how quickly crude flows, and inventories and shipping activity return to normal.
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Speaking at a JPMorgan conference, Lashier said between 90 million and 100 million barrels of crude remain trapped in the strait, and that would work their way out over time.
"We believe that most of the tanks on shore are full before crude can appreciably ramp up. You have to get some room in those tanks to place that crude, and so it's going to be a long drawn out paced process," Lashier said.
Lashier said the market had benefited from an efficient response to the Strait of Hormuz disruption, which he said helped prevent crude prices from reaching $200 a barrel.
Phillips 66 primarily processes North American crude, including Western Canadian Select grades, and was able to run its refineries at "extraordinary rates" during the disruption, he said.
The company used the Jones Act waivers — which allowed non-U.S. ships to transport good in domestic waters — to move refined products to the West Coast and crude to the East Coast, he added.
However, some of the factors that cushioned the market, like the releases from the U.S. Strategic Petroleum Reserve and low inventories at Cushing, Oklahoma storage hub, were temporary, Lashier said.
"We think there's going to be some structural shift in what the crude floor is."
Reporting by Arunima Kumar in Bengaluru; Editing by Leroy Leo
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Phillips 66 (PSX - Free Report) closed at $173.26 in the latest trading session, marking a -3.45% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.65%. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 3.07%.
Heading into today, shares of the oil refiner had gained 1.84% over the past month, outpacing the Oils-Energy sector's loss of 2.71% and the S&P 500's gain of 0.48%.
Market participants will be closely following the financial results of Phillips 66 in its upcoming release. On that day, Phillips 66 is projected to report earnings of $5.94 per share, which would represent year-over-year growth of 149.58%. Meanwhile, our latest consensus estimate is calling for revenue of $35.32 billion, up 5.37% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.95 per share and a revenue of $141.01 billion, representing changes of +178.73% and +3.26%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Phillips 66. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 6.49% higher within the past month. Phillips 66 is currently a Zacks Rank #1 (Strong Buy).
With respect to valuation, Phillips 66 is currently being traded at a Forward P/E ratio of 10. This expresses a premium compared to the average Forward P/E of 9.54 of its industry.
We can additionally observe that PSX currently boasts a PEG ratio of 0.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PSX's industry had an average PEG ratio of 0.38 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 20, finds itself in the top 9% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
The Zacks Oil and Gas - Refining & Marketing industry looks well placed for continued strength. U.S. refiners are benefiting from reliable access to domestic and Canadian crude supplies, which gives them an edge when global oil flows face disruptions. Product inventories also remain tight, especially for diesel, gasoline and jet fuel, while demand from travel, freight, agriculture and exports stays firm. That mix can support pricing power and refining margins. The industry’s outlook is further backed by a strong Zacks Rank, improving earnings estimates and solid one-year performance versus the broader energy sector and the S&P 500. Valuation also remains reasonable, with the group trading below both the sector and market on EV/EBITDA. In this favorable setting, flexible refiners with strong operations and shareholder-friendly strategies stand out. Valero Energy (VLO - Free Report) , Phillips 66 (PSX - Free Report) and HF Sinclair (DINO - Free Report) look especially attractive, making them excellent investment options.
Industry Overview The Zacks Oil and Gas - Refining & Marketing industry consists of companies involved in selling refined petroleum products (including heating oil, gasoline, jet fuel, residual oil, etc.) and a plethora of non-energy materials (like asphalt, road salt, clay and gypsum). Some companies operate refined product terminals, storage facilities and transportation services. The primary activity of these firms involves purchasing crude or other feedstocks and processing them into a wide variety of refined products. Refining margins are extremely volatile and generally reflect the state of petroleum product inventories, demand for refined products, imports, regional differences and capacity utilization in the industry. Other major determinants of refining profitability are the light/heavy and sweet/sour spreads. Refining companies are also prone to unplanned outages.
3 Trends Defining the Oil and Gas - Refining & Marketing Industry's Future Reliable U.S. Supply is Becoming a Bigger Advantage: Refiners with access to secure North American crude supplies are in a better position when global oil flows are disrupted. While some overseas refineries may struggle with crude availability or shipping delays, many U.S. refiners can keep running because they are linked to domestic and Canadian supply networks. This matters because steady operations help the industry meet demand for gasoline, diesel and jet fuel when global markets are tight. In simple terms, a reliable supply can turn market stress into an opportunity for stronger margins.
Low Product Inventories Can Support Refining Margins: Demand for transportation fuels remains fairly resilient, even with higher prices. At the same time, inventories of products like diesel, gasoline and jet fuel are tight in several markets. This creates a favorable setup for refiners because buyers still need fuel, but supply is not easy to rebuild quickly. Jet fuel and distillates appear especially strong, helped by travel, freight, agriculture and export demand. When inventories are low and replacement supply is limited, refiners usually have better pricing power. That can support industry earnings through the current cycle.
Flexibility is Becoming More Valuable Than Size Alone: The best-positioned refiners are not just running large plants. They are also adjusting what they produce based on market needs. When jet fuel is short, they can shift more output toward jet. When gasoline demand improves, they can raise gasoline yields. When heavy crude is discounted, complex refineries can process more of it and capture better economics. This flexibility helps the industry respond quickly to changing crude prices, product shortages and regional imbalances. In a volatile market, the ability to change the product mix can protect margins and improve cash generation.
Zacks Industry Rank Indicates Positive Outlook The Zacks Oil and Gas - Refining & Marketing is a 16-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #7, which places it in the top 3% of 245 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of improving earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up 65.7% in the past year.
Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Outperforms Sector & S&P 500 The Zacks Oil and Gas - Refining & Marketing industry has fared better than the broader Zacks Oil - Energy Sector as well as the Zacks S&P 500 composite over the past year.
The industry has gone up 72.3% over this period compared with the broader sector’s increase of 50.7%. Meanwhile, the S&P 500 has gained 33.2%.
One-Year Price Performance
Industry's Current Valuation Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of noncash expenses.
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA), the industry is currently trading at 6.40X, significantly lower than the S&P 500’s 17.61X. It is also below the sector’s trailing 12-month EV/EBITDA of 7.19X.
Over the past five years, the industry has traded as high as 6.42X and as low as 1.77X, with a median of 3.61X, as the chart below shows.
Trailing 12-Month Enterprise Value-to-EBITDA (EV/EBITDA) Ratio (Past Five Years)
3 Stocks to Buy Valero Energy: Valero Energy is a major independent energy company focused on liquid transportation fuels. It operates 14 refineries with about 3 million barrels per day of high-complexity throughput capacity, supported by logistics and wholesale networks across key markets. The Zacks Rank #1 (Strong Buy) company also runs 12 ethanol plants with 1.7 billion gallons of annual capacity.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Beyond refining, Valero is growing in low-carbon fuels through Diamond Green Diesel, which produces renewable diesel and sustainable aviation fuel from recycled feedstocks such as used cooking oil and animal fats. Its strategy centers on disciplined spending, reliable operations, cost control and steady shareholder returns.
The Zacks Consensus Estimate for 2026 earnings of VLO indicates 126.3% growth. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 28%. The company’s shares have increased 116.7% in a year.
Price and Consensus: VLO
Phillips 66: Phillips 66 is an integrated energy company with operations spanning midstream, chemicals, refining, marketing, specialties and renewable fuels. Its asset base connects supply from the wellhead to end consumers, supported by reliable feedstocks, strong operations and access to premium markets across more than 80 countries.
This #1 Ranked company trades large volumes of crude, clean products, NGLs, renewable feedstocks and natural gas, helped by a broad commercial network and global shipping reach. In first-quarter 2026, PSX reported earnings of $207 million and returned $778 million to its shareholders, while staying focused on disciplined spending, debt reduction and steady dividends.
Phillips 66’s expected EPS growth rate for three to five years is currently 38.6%, which compares favorably with the industry's growth rate of 26.4%. The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 67.8%. Shares of the company have gained 70.8% in a year.
Price and Consensus: PSX
HF Sinclair: HF Sinclair is a Dallas-based energy company operating across refining, marketing, midstream, lubricants and renewables. It runs seven refineries with 678,000 barrels per day of capacity across the Mid-Continent, West and Pacific Northwest regions. The Zacks Rank #1 company also owns a broad pipeline, storage and terminal network that supports fuel movement across key U.S. markets.
Its well-known Sinclair brand reaches over 1,700 branded retail sites, while its lubricants business sells products in more than 80 countries. HF Sinclair is also building scale in renewable diesel, with about 380 million gallons of annual capacity, supporting cleaner fuel demand and long-term growth.
HF Sinclair has a market capitalization of nearly $13 billion. DINO beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 203.6%. The Zacks Consensus Estimate for HF Sinclair’s 2026 earnings per share indicates 40.5% year-over-year growth. Shares of DINO have gained 127.8% in a year.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest 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 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 A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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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.
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 one of the world's leading refiners, Phillips 66 operates 13 refineries, primarily in the United States, with a total refining capacity of 2.2 million barrels per day.
PSX is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Oils-Energy stock. PSX has a Momentum Style Score of B, and shares are up 3.2% over the past four weeks.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $5.24 to $16.85 per share. PSX also boasts an average earnings surprise of +67.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PSX should be on investors' short list.
Phillips 66 is well-positioned for a significant windfall from elevated crack spreads driven by global supply disruptions and the Iran War. Refining margins surged to $10.11/barrel, with spreads near $60, potentially delivering $7B+ cumulative windfall through 2027, or ~$20/share. Operational improvements and cost reductions, alongside a 50% capital return policy, support robust shareholder returns and accelerated debt reduction.
Phillips 66 (PSX - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PSX broke through the 50-day moving average, which suggests a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
Shares of PSX have been moving higher over the past four weeks, up 7.7%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that PSX could be poised for a continued surge.
Looking at PSX's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 7 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting PSX on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
HOUSTON--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX) today announced that the Board of Directors has appointed Greg Hayes to serve as lead independent director, effective immediately.
“We are pleased to have Greg step into the role of Lead Independent Director," said Mark Lashier, Chairman and Chief Executive Officer of Phillips 66. “His distinguished leadership experience and deep knowledge of Phillips 66 position him well for this responsibility. I look forward to his leadership.”
As previously disclosed, Glenn Tilton and Marna Whittington did not stand for re-election at Phillips 66’s Annual Meeting of Shareholders and accordingly retired from the Board at the end of their terms. Doug Terreson will succeed Whittington as Chair of the Audit and Finance Committee.
Tilton, who served as Lead Independent Director, echoed Lashier’s praise for Hayes, “Greg’s sound and practical perspectives have been valuable assets to the Board over the past four years. I have enjoyed working with him and have full confidence in his ability to serve as Lead Independent Director.”
“I want to thank Glenn and Marna for their substantial contributions to the Board and for their years of dedicated service to Phillips 66,” said Hayes. “Looking ahead, the Board is confident in our strategy and ability to drive consistent, compelling value for our shareholders.”
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company's portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
Phillips 66 (NYSE: PSX) today announced that the Board of Directors has appointed Greg Hayes to serve as lead independent director, effective immediately.
“We are pleased to have Greg step into the role of Lead Independent Director," said Mark Lashier, Chairman and Chief Executive Officer of Phillips 66. “His distinguished leadership experience and deep knowledge of Phillips 66 position him well for this responsibility. I look forward to his leadership.”
As previously disclosed, Glenn Tilton and Marna Whittington did not stand for re-election at Phillips 66’s Annual Meeting of Shareholders and accordingly retired from the Board at the end of their terms. Doug Terreson will succeed Whittington as Chair of the Audit and Finance Committee.
Tilton, who served as Lead Independent Director, echoed Lashier’s praise for Hayes, “Greg’s sound and practical perspectives have been valuable assets to the Board over the past four years. I have enjoyed working with him and have full confidence in his ability to serve as Lead Independent Director.”
“I want to thank Glenn and Marna for their substantial contributions to the Board and for their years of dedicated service to Phillips 66,” said Hayes. “Looking ahead, the Board is confident in our strategy and ability to drive consistent, compelling value for our shareholders.”
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company's portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260513220336/en/
Phillips 66 is rated Buy, with all business segments generating strong profits and benefiting from a favorable refining upcycle. PSX's operational improvements, supply rationalizations, and global inventory depletion position it for higher and more sustainable cash generation than previous cycles. Despite recent debt accumulation from commodity volatility, PSX expects normalization and plans to retire $8B in debt, targeting $17B net debt by 2027.
HOUSTON--(BUSINESS WIRE)--Phillips 66 today announced it is moving forward with the Zeus Gas Plant and a third Coastal Bend Fractionator, two projects that will advance its integrated wellhead-to-market strategy, thereby expanding gas processing capacity in the Permian and NGL fractionation capabilities on the Gulf Coast.
Zeus will be a 300 MMcf/d gas processing facility in the Permian and will include the new Midland Express (MEX) Pipeline, an approximately 45-mile, 20-inch line integrating Phillips 66’s Permian Basin gathering systems. Expected to come online with the Zeus processing plant, MEX will be able to move up to 230 MMcf/d of wellhead gas and provide future bi-directional flexibility between multiple processing facilities.
The third Coastal Bend Fractionator, previously referenced as Corpus Christi Fractionator, or BTT2, will be a 100 MBD natural gas liquids (NGL) fractionator in Robstown, Texas, including NGL purity pipeline expansion and water treatment facilities.
Both projects are expected to be online in 2028.
"Zeus Gas Plant and a third Coastal Bend Fractionator will strengthen our ability to move growing Permian volumes across an integrated value chain, from the wellhead to key market centers," said Don Baldridge, executive vice president, Midstream, Phillips 66. "These projects will enhance system connectivity, increase processing and fractionation capacity, and position us to serve customers while capturing additional value across our Midstream network."
Zeus Gas Plant and the third Coastal Bend Fractionator are included in Phillips 66’s capital spending program and fall within the company’s stated $2.0 billion to $2.5 billion capital spending range. This is consistent with Phillips 66’s commitment to reduce debt to $17 billion by year-end 2027 and return more than 50% of net operating cash flow, excluding working capital, to shareholders.
The projects will support growing Permian production from Phillips 66 customers’ dedicated acreage by adding the processing and fractionation capacity needed to move increasing volumes efficiently through Phillips 66’s integrated system. With Permian production expected to grow over the next five years, Zeus and the third Coastal Bend Fractionator will help connect advantaged supply to downstream assets and premium markets.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company's portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
Important Information Relating to Forward-Looking Statements
Phillips 66:
This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum or renewable fuels products pricing, regulation or taxation, including exports; our ability to timely obtain or maintain permits, including those necessary for capital projects; fluctuations in NGL, crude oil, refined petroleum products, renewable fuels, renewable feedstocks and natural gas prices, and refined product, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for our products; changes to government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; liability resulting from pending or future litigation or other legal proceedings; liability for remedial actions, including removal and reclamation obligations under environmental regulations; unexpected changes in costs or technical requirements for constructing, modifying or operating our facilities or transporting our products; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected technological or commercial difficulties in manufacturing, refining or transporting our products, including chemical products; the level and success of producers’ drilling plans and the amount and quality of production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; changes in the cost or availability of adequate and reliable transportation for our NGL, crude oil, natural gas and refined petroleum and renewable fuels products; failure to complete definitive agreements and feasibility studies for, and to complete construction of, announced and future capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to our credit profile or illiquidity or uncertainty in the domestic or international financial markets; damage to our facilities due to accidents, weather and climate events, civil unrest, insurrections, political events, terrorism or cyberattacks; domestic and international economic and political developments including war and armed hostilities, instability in the financial services and banking sector, excess inflation, expropriation of assets and changes in fiscal policy, including interest rates; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and properties, plants and equipment and/or strategic decisions or other developments with respect to our asset portfolio that cause impairment charges; substantial investments required, or reduced demand for products, as a result of existing or future environmental rules and regulations, including greenhouse gas emissions reductions and reduced consumer demand for refined petroleum products; changes in tax, environmental and other laws and regulations (including alternative energy mandates) applicable to our business; political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of our joint ventures that we do not control; the potential impact of activist shareholder actions or tactics; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the U.S. Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
