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Marathon Petroleum (MPC) Gains But Lags Market: What You Should Know

In the latest trading session, Marathon Petroleum (MPC) closed at $65.45, marking a +0.14% move from the previous day. The stock lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq lost 0.15%.

Heading into today, shares of the refiner had lost 17.08% over the past month, lagging the Oils-Energy sector's loss of 7.66% and the S&P 500's loss of 0.57% in that time.

Wall Street will be looking for positivity from MPC as it approaches its next earnings report date. This is expected to be February 7, 2019. In that report, analysts expect MPC to post earnings of $1.30 per share. This would mark year-over-year growth of 23.81%. Meanwhile, our latest consensus estimate is calling for revenue of $29.19 billion, up 37.46% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.16 per share and revenue of $90.49 billion, which would represent changes of +35.79% and +20.07%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MPC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.51% higher. MPC is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that MPC has a Forward P/E ratio of 12.66 right now. This represents a discount compared to its industry's average Forward P/E of 13.53.

It is also worth noting that MPC currently has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 1.05 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 113, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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