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Phillips 66 Stock Falls the Least Compared to Its Peers


Jun. 5 2019, Updated 12:34 p.m. ET

Phillips 66’s performance

Phillips 66 (PSX) stock has fallen 7.7% in the past month, higher than the fall in the broader market indicator, the SPDR S&P 500 ETF (SPY). SPY has fallen 5.7% in the same period.

However, among its peers, Phillips 66 stock has fallen the least. Valero Energy (VLO), Marathon Petroleum (MPC), and PBF Energy (PBF) have lost 18.4%, 19.7%, and 21.1%, respectively, in the same period.

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Phillips 66’s moving averages

On May 3, 2019, Phillips 66’s ten-day moving average stood 1.9% below its 30-day moving average. However, now the gap between both moving averages has widened to 5.6% due to a steeper fall in PSX’s ten-day moving average. The bigger the gap is between moving averages, the more difficult it is for the ten-day moving average to cross over the 30-day moving average—not a favorable scenario.

Why has Phillips 66 stock fallen?

In the past month, Phillips 66 stock has fallen due to weaker equity markets. Lower first-quarter earnings could have also affected the stock. Phillips 66’s adjusted pretax earnings fell due to a year-over-year fall in its Refining, Chemicals, and Marketing and Specialties earnings partially offset by a rise in its Midstream earnings. For more on these earnings, read Phillips 66 Posts Weak First-Quarter Earnings.

However, the fall in PSX has been restricted by better refining crack conditions. The US Gulf Coast WTI 3-2-1, the benchmark crack, has risen 11% YoY to $20.1 per barrel in the second quarter. The US Gulf Coast is a vital refining area for Phillips 66, which processed 36% of its total oil and feedstock throughput in the region in the first quarter. The rise in the crack could support PSX’s refining margin and earnings in the quarter.


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