Why Phillips 66 Is Poised to Pop

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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 has earned a coveted five-star ranking.

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

Phillips 66facts

Headquarters (founded)

Houston, Texas (1875)

Market Cap

$38.8 billion

Industry

Oil and gas refining and marketing

Trailing-12-Month Revenue

$166.2 billion

Management

Chairman/CEO Greg Garland

CFO Gregory Maxwell

Trailing-12-Month Return on Equity

18.7%

Cash/Debt

$3.5 billion / $7.0 billion

Dividend Yield

1.8%

Competitors

Marathon Petroleum

Valero Energy


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

On CAPS, 98% of the 300 members who have rated Phillips 66 believe the stock will outperform the S&P 500 going forward.

Late last month, one of those Fools, All-Star BudandMolly, succinctly summed up Phillips 66 bull case for our community:

Refiners have a monopoly on gas production. Due to regulation there is a virtual block to any new refineries or even expansion of existing ones leaving them without competition. Limited production of gasoline keeps prices high and as oil prices come down due to domestic production increases the spread of input costs to output prices increases.

Of course, there are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

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

The article Why Phillips 66 Is Poised to Pop originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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