Phillips 66 (NYSE:PSX) Is Up 8.4% During Last Week’s Trading


Dallas, Texas 10/28/2013 (Financialstrend) – The S&P 500 index tracked Phillips 66 (NYSE:PSX) with a market capitalization of $39.25 billion. During the last few days of trading last week, the stock of this bell weather refiner has seen shed close to 0.13%. As of close of business on October 25, the stock of the refinery was trading at $63.4 per share indicating a small 0.27% increase over its previous day close.

The weakness in the stock was a result of ominous prediction by rating agency Simmons that the third quarter results from oil refining companies would be weak across multiple companies which operate in this space. Investors in the stock would be hoping that the potentially lacklustre 3Q results should not be more than what has been predicted by trade analysts. The rating agency is also gone ahead and reported that it suspects the slowdown in momentum would in turn extend into the forth quarter. It terms the gasoline market in U.S to be over stocked and sees refineries going in for a scheduled down time for repair and regular maintenance. It also portends that the demand for oil will go down in U.S over the next few months.

This rating alert is of context to investors since Simmons has named Phillips 66 as one of the companies which it rates as overweight. The company also will be posting its 3 quarter results this week. Investors in the stock would be hoping that the results of operations in the 3 quarter would not be as bad as being predicted. In the past one month the stock has appreciated by 8.4%. At current valuations, it is trading at 9.1% below its 52 week high valuations. Analysts tracking this stock expect its price target to reach $69.25 in the short term. Post the 3Q conf call this week, investors would be able to determine if they should hold on to the stocks or get out of them.