4-Star Stocks Poised to Pop: Phillips 66
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|
|Industry||Oil and gas refining and marketing|
|Trailing-12-Month Revenue||$182.1 billion|
|Management||Chairman/CEO Greg Garland|
CFO Greg Maxwell
|Trailing-12-Month Return on Equity||19.4%|
|Total Debt||$391.0 million|
Shell Oil Products
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.
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.
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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.