Josh Brown Says Philip 66 (PSX) Breakout 'Could Be Coming' - Here's Why

We recently published 10 Stocks Moving On Key Analyst Calls. Phillips 66 (NYSE:PSX) is one of the stocks analysts were recently talking about.

Josh Brown, CEO of Ritholtz Wealth Management, said in a program on CNBC a couple of weeks ago that a breakout for PSX could be coming. The analyst talked about insider buying and an activist hedge fund taking board seats at the company:

“Phillips 66 (NYSE:PSX) is one of the three largest of that refinery group. Has not broken out yet. I think that could be coming. Number one, there’s a million reasons why an insider might sell stock in their own company, pay for a daughter’s wedding, real estate transaction, diversify the portfolio, whatever. There’s really only one reason why they buy. We had four board directors at Phillips 66 (NYSE:PSX) buy stock this summer, including one a couple weeks ago of a million dollars worth. And you’ve also got Elliott, one of the most successful activists in the world, quite frankly, now has two board seats at Phillips 66 (NYSE:PSX) and is on the record publicly stating this should be a $200 stock. So, I bought a little bit today, probably not done buying. I do believe that this will follow Marathon and Valero higher. I don’t have a stop in, but if you want to risk manage the position, I like 120. That is not only the 200-day moving average. It’s also exactly where the stock bottomed in the first two weeks of August.”

Aristotle Capital’s Value Equity Strategy stated the following regarding Phillips 66 (NYSE:PSX) in its first quarter 2024 investor letter:

“During the quarter, we sold our positions in Phillips 66 (NYSE:PSX) and Sysco and invested in two new positions: Lowe’s Companies and TotalEnergies.

We first purchased Phillips 66, the energy manufacturing and logistics company, in the third quarter of 2012. During our over decade-long ownership period, the company transformed itself from a predominately refining operation to a significantly more diversified energy business. In 2012, refining represented nearly 75% of earnings, and today it is less than half. With the expansion of other businesses, including midstream which is underpinned by long-term fee-based contracts, as well as chemicals and marketing, we believe Phillips 66 has reduced its cyclicality while enhancing FREE cash flow generation, supporting increased returns to shareholders. In addition, the company has started to position itself for the energy transition and remains on track to convert its San Francisco refinery into one of the world’s largest renewable fuels facilities. While we continue to believe Phillips 66 is a high-quality company on the path to further improvement, we decided to sell our shares to fund the purchase of what we consider a more suitable and attractive investment in TotalEnergies.”

While we acknowledge the potential of PSX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.