5 Most Undervalued Energy Stocks to Buy Now

2. Phillips 66 (NYSE:PSX)

Phillips 66 (NYSE:PSX) is one of the most undervalued energy stocks to buy now. On March 12, Goldman Sachs lifted the price target on Phillips 66 (NYSE:PSX) to $186 from $168 and maintained a Neutral rating on the shares. The firm told investors in a research note that estimates across the U.S. Majors and Canadian Oils have been updated to reflect recent Middle East disruptions, with price targets lifted despite strong year-to-date equity performance.

Phillips 66 (NYSE:PSX) also received a rating update from Barclays on February 20. The firm lifted the price target on the stock to $158 from $142, maintaining an Equal Weight rating on the shares and telling investors that it updated the company’s model to reflect the fiscal Q4 report.

In its fiscal Q4 and full year 2025 results, the company reported fiscal Q4 earnings of $2.9 billion or $7.17 per share and adjusted earnings of $1.0 billion or $2.47 per share, including $239 million of pre-tax accelerated depreciation on the Los Angeles Refinery. Phillips 66 (NYSE:PSX) also reported full-year 2025 earnings of $4.4 billion or $10.79 per share and adjusted earnings of $2.6 billion or $6.44 per share, including $964 million of pre-tax accelerated depreciation on the Los Angeles Refinery.

Phillips 66 (NYSE:PSX) is involved in the processing, storage, transportation, and marketing of fuels and other related products. The company’s operations are divided into the following segments: Midstream, Chemicals, Refining, Renewable Fuels, Marketing and Specialties, and Corporate and Other.