Raymond James updated its concentrated stock list on Monday, removing UMB Financial Corp after the departure of the analyst who covered the company and adding Phillips 66 (NYSE:PSX).
The firms energy analyst Justin Jenkins said the diversified refiner, midstream and chemical operations at Phillips 66 are positioned to benefit from higher-than-average prices and margins on refined products and chemicals for at least the next several months. Raymond James also pointed out that Phillips 66 is trading at only modestly above its historical average price-to-earnings and price-to-book ratios.
The change to the concentrated stock list occurred as equity markets posted slight gains last week. Raymond James noted that robust corporate earnings reports helped offset market concerns about continued oil price increases and the lack of progress related to developments in the Strait of Hormuz.
First-quarter earnings season has shown resilience, the firm said, with consensus earnings per share expectations for 2026 rising 5.5% year-to-date, a gain that has come mostly since March. Raymond James emphasized that this improvement in earnings has been broad-based, with large-cap, mid-cap and small-cap indexes recording more companies raising earnings-per-share guidance than lowering it for the fourth straight quarter.
On technology-related revenue trends, Raymond James observed that revenues tied to artificial intelligence are likely to combine seat-based licenses with usage-based models. The firm also expects capital expenditures to continue to increase through at least 2027.
In the payments sector, Raymond James fintech analyst Madison Suhr reported strong volume trends. Visa saw U.S. transaction volumes rise 8% year-over-year in the first quarter and accelerate to 9% in April, which the firm characterized as the strongest growth since 2022. American Express volumes were described as strong as well, while Mastercard volumes were in line with expectations.
Raymond James also commented on monetary policy. The firm noted that the U.S. Federal Reserve and other central banks have shifted their biases toward rate increases rather than decreases, a change attributed to the limited economic damage observed so far from the developments in the Strait of Hormuz.
Contextual note: The removal of UMB Financial Corp followed the departure of the analyst responsible for coverage of that company. The addition of Phillips 66 reflects Raymond James view of cyclical strength in refined-product and chemical margins and the relative valuation of the stock.