As the US oil stocks regain momentum amidst resilient refining margins and shareholder-friendly capital allocation, Josh Brown believes two names in particular are poised for upside in the months ahead.
Brown is a widely followed market commentator on CNBC and the chief executive of New York-based independent advisory firm, Ritholtz Wealth Management.
Energy is a sector often overshadowed by technology and consumer giants, but there are currently opportunities within this space that are just too hard to ignore, according to Josh Brown.
The following are the two best oil stocks he recommends owning heading into 2026.
Phillips 66 (NYSE: PSX)
Josh Brown is bullish on Phillips 66 after the Houston-headquartered firm reported market-beating financials for its third quarter on October 29th.
PSX earned $2.52 on a per-share basis (adjusted) in its fiscal Q3 on $34.98 billion revenue, handily beating Street estimates as refining utilization hit 99% – the highest since 2018.
In the earnings release, Mark Lashier – the company’s chief executive – highlighted “world-class operations” and record clean product yields, reinforcing Phillips 66’s operational strength.
Speaking with CNBC, Brown agreed that PSX shares “have really been the laggard” compared to peers like Valero, but dubbed Q3 “the quarter where they got their act together.”
Phillips 66 returned $751 million to shareholders through dividends and buybacks, further aligning with his emphasis: “the most important thing with the name is returning capital to shareholders.”
Strategically, the NYSE-listed firm completed its $1.4 billion acquisition of the remaining stake in WRB Refining LP – gaining full control of the Wood River and Borger refineries.
The transaction simplified its portfolio and enhanced margin capture. With solid cash flow, a clean balance sheet, and visible progress on its Golden Triangle and Ras Laffan polymer projects, PSX is evolving into a more integrated energy player.
For investors seeking exposure to downstream strength and disciplined capital returns, Phillips 66 stock is no longer the laggard – it’s a contender.
Marathon Petroleum (NYSE: MPC)
Josh Brown remains constructive on Marathon Petroleum ahead of its quarterly earnings scheduled for November 4th.
Expectations are for the Findlay-headquartered firm to report $2.91 a share of adjusted earnings, driven by strong refining margins and stable throughput volumes.
MPC’s refining segment has consistently delivered, and its midstream arm – via MPLX – adds a layer of cash flow stability that investors prize.
Josh Brown is unequivocal in his stance: “I just think the publicly traded refinery look really good.” He agreed that Marathon shares have already broken out, and recommends sticking with them for the long haul.
Beyond earnings, Marathon Petroleum’s capital discipline really stands out.
The NYSE-listed firm has aggressively repurchased shares and maintained a generous dividend (1.86% yield currently).
Its refining footprint, including the Galveston Bay and Garyville complexes, positions it to benefit from resilient US fuel demand and export flows.
In short, heading into 2026, MPC remains a top-tier US oil stock with momentum, margin strength, and shareholder alignment. Wall Street analysts currently have consensus “overweight” rating on Marathon shares as well.
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