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


Oil and gas refining and marketing

Trailing-12-Month Revenue

$182.1 billion


Chairman/CEO Greg Garland
CFO Greg Maxwell

Trailing-12-Month Return on Equity


Total Debt

$391.0 million


Marathon Petroleum
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.

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.

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

At the time thisarticle 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.

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