Josh Brown's best stocks in the market: Phillips 66 and Marathon Petroleum

Core Viewpoint - The energy sector, while less discussed, still presents investment opportunities, particularly in companies like Baker Hughes, Valero, and Phillips 66, which are expected to report earnings soon [2][3]. Company Insights - Baker Hughes and Valero have shown strong performance and are considered among the best stocks in the energy market [2]. - Phillips 66 is anticipated to report earnings soon, with expectations of improved performance after being a laggard in the sector [3][4]. - Marathon Petroleum is also highlighted as a strong stock, with a recommendation to maintain positions despite recent fluctuations [5]. Financial Performance - Phillips 66 is projected to generate approximately $30 billion in revenue, with a share price target of $229 [4]. - The focus for these companies is on returning capital to shareholders, which will be closely monitored in upcoming earnings reports [4]. Debt Management - There is concern regarding Phillips 66's high debt levels, which need to be reduced to the mid-teens from above $20 billion, potentially impacting shareholder dividends [6]. Market Conditions - The current environment of $60 oil is favorable for refiners, emphasizing the importance of production volume in the U.S. rather than just oil prices [7]. - The energy ecosystem is also shifting focus towards natural gas and its role in power production [8].