Phillips 66 (PSX) Falls Over 4% This Week: How Should You Manage The Risk Of This Investment?

Phillips stock was falling this week, pretty badly though. The stock was trading at $81.68 on July 1. There have been some increases though, but they were very insignificant. Stock has crashed by 5% on the weekend. As of the last trading session the stock was trading at $70.56. Such drop might be caused by the investors being afraid to risk.

PSX is on track to generate free cash flow of $1.8 billion in 2021. This amount is equivalent to operating cash flow plus capital expenditures. Phillips ‘s ability to generate value has helped it outperform the market since the pandemic hit. It’s still possible that PSX and its peers can return to their all-time highs within the next couple of years.

It’s also important to note that the recent sell-off has greatly increased the company’s attractiveness. Its enterprise value is $43.9 billion and its multiple is 7.0x. The energy industry is very cyclical and can cause great pain to traders when other stocks climb to new all-time highs. PSX is a great tool to help you identify and manage risk.

Agneta Johansen

Agneta is still enjoying her trips to Asia and Africa while she works at Own Snap as an author and reporter. Very soon she will settle somewhere in Europe and run her startup enterprise.

Want Hot Stocks?    Yes. I Love Them No thanks