Marathon Petroleum (MPC) closed at $110.58 in the latest trading session, marking a -0.31% move from the prior day. This move lagged the S&P 500's daily gain of 0.75%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 10.36%.
Heading into today, shares of the refiner had gained 1.49% over the past month, outpacing the Oils-Energy sector's loss of 6.78% and the S&P 500's loss of 5.98% in that time.
Marathon Petroleum will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2023. On that day, Marathon Petroleum is projected to report earnings of $5.79 per share, which would represent year-over-year growth of 345.38%. Meanwhile, our latest consensus estimate is calling for revenue of $32.19 billion, down 9.6% from the prior-year quarter.
Any recent changes to analyst estimates for Marathon Petroleum should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 13.25% lower within the past month. Marathon Petroleum is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Marathon Petroleum is holding a Forward P/E ratio of 7.56. This represents a discount compared to its industry's average Forward P/E of 8.09.
Investors should also note that MPC has a PEG ratio of 0.32 right now. 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 0.58 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 80, which puts it in the top 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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