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Marathon Petroleum (MPC) Gains As Market Dips: What You Should Know

Published 06/11/2019, 05:50 AM
Updated 07/09/2023, 06:31 AM
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Marathon Petroleum (MPC) closed at $47.77 in the latest trading session, marking a +0.19% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq lost 0.01%.

Prior to today's trading, shares of the refiner had lost 5.99% over the past month. This has lagged the Oils-Energy sector's loss of 2.13% and the S&P 500's gain of 0.34% in that time.

Wall Street will be looking for positivity from MPC as it approaches its next earnings report date. The company is expected to report EPS of $1.67, down 26.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $31.01 billion, up 38.16% from the prior-year quarter.

MPC's full-year Zacks Consensus Estimates are calling for earnings of $4.74 per share and revenue of $115.83 billion. These results would represent year-over-year changes of -30.09% and +19.28%, respectively.

It is also important to note the recent changes to analyst estimates for MPC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.55% lower. MPC currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, MPC is holding a Forward P/E ratio of 10.05. This valuation marks a discount compared to its industry's average Forward P/E of 13.26.

Meanwhile, MPC's PEG ratio is currently 1.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.



Marathon Petroleum Corporation (NYSE:MPC): Free Stock Analysis Report

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