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Why it is Worth Buying Phillips 66 (PSX) Shares Right Away

Phillips 66 PSX witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The Zacks Consensus Estimate for its 2022 earnings per share suggests a year-over-year improvement of roughly 257.7%.

What's Favoring the Stock?

PSX has a diversified business model, with a significant presence in businesses related to refining midstream, chemicals and marketing & specialties. In each of the operations, Phillips 66 has a good footprint pertaining to safety, profitability, size and competitive strengths.

It is focusing more on businesses like midstream, renewables and chemicals, which makes the business model more stable. The firm’s premier midstream operations comprise the U.S. pipeline network, spread across 22,000 miles. Included in the midstream portfolio are multiple refined product terminals, crude oil terminals and NGL terminals. Thus, with a robust midstream business portfolio, Phillips 66 will generate stable cashflows with lower exposure to energy business volatility.

PSX’s financial strength is reflected in its peer-leading investment-grade credit rating. PSX, carrying a Zacks Rank #2 (Buy), also has a disciplined capital allocation strategy. Also, Phillips 66 has more than $10 billion in available liquidity.

Other Stocks to Consider

Other prospective players in the energy space include Marathon Petroleum Corporation MPC, PBF Energy Inc. PBF and Equinor ASA EQNR. All the stocks carry a Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Marathon Petroleum is a well-known name in the downstream space and is the operator of the largest refining system in the nation. MPC has a strong focus on returning capital back to shareholders. In the past 30 days, Marathon Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023.

PBF Energy is a leading North American independent refiner. PBF is highly inclined in reducing debt load and also has reinstated its regular quarterly dividend. Over the past 30 days, PBF Energy has witnessed upward earnings estimate revisions for 2022 and 2023.

On the Norwegian continental shelf, Equinor is the largest producer of natural gas. In Europe, EQNR is the second largest in terms of supplying gas. According to Equinor, its most important markets for gas in Europe are England, France and Germany. This reflects on Europe’s dependence on Equinor for gas.

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Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report

Phillips 66 (PSX) : Free Stock Analysis Report

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Equinor ASA (EQNR) : Free Stock Analysis Report

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