4-Star Stocks Poised to Pop: Phillips 66

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas refiner Phillips 66 (NYS: PSX) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Phillips 66's business and see what CAPS investors are saying about the stock right now.

Phillips 66 facts

Headquarters (founded)Houston (2011)
Market Cap$20.3 billion
IndustryOil and gas refining and marketing
Trailing-12-Month Revenue$182.1 billion
ManagementChairman/CEO Greg Garland
CFO Greg Maxwell
Trailing-12-Month Return on Equity19.4%
Total Debt$391.0 million
CompetitorsMarathon Petroleum
Shell Oil Products
US

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 72 members who have rated Phillips 66 believe the stock will outperform the S&P 500 going forward.  

Earlier this month, one of those bulls, jc09058, tapped the stock as a timely bargain opportunity:

Yes, it refines oil but there's a little more behind this company. High end chemical developer and a mid stream business make for nice optional extra to add to the bottom line and to grow the business.

It's cheap now because of the traditional unloading of spin offs which is fine by me. ... This is one time when the sum of the parts was greater than the whole, but between ConocoPhillips and Phillips 66, I expect Phillips 66 to provide the better return over the near future.

That's because it's being valued as an oil refiner. It's more than that. It receives 40% of its profit from high-return chemical and midstream businesses.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Phillips 66 may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners