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Marathon Petroleum (MPC) Gains But Lags Market: What You Should Know
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In the latest trading session, Marathon Petroleum (MPC - Free Report) closed at $85.68, marking a +1.24% move from the previous day. This change lagged the S&P 500's 3.06% gain on the day. Elsewhere, the Dow gained 2.68%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the refiner had lost 14.93% over the past month, lagging the Oils-Energy sector's loss of 12.66% and the S&P 500's loss of 4.31% in that time.
Investors will be hoping for strength from Marathon Petroleum as it approaches its next earnings release, which is expected to be August 2, 2022. The company is expected to report EPS of $4.98, up 643.28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $31.41 billion, up 5.31% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.72 per share and revenue of $131.8 billion, which would represent changes of +460% and +8.99%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Marathon Petroleum. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 25.51% higher. Marathon Petroleum is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Marathon Petroleum is currently trading at a Forward P/E ratio of 6.17. Its industry sports an average Forward P/E of 8.55, so we one might conclude that Marathon Petroleum is trading at a discount comparatively.
Investors should also note that MPC has a PEG ratio of 0.31 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 0.6 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 13, which puts it in the top 6% 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.
To follow MPC in the coming trading sessions, be sure to utilize Zacks.com.
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Marathon Petroleum (MPC) Gains But Lags Market: What You Should Know
In the latest trading session, Marathon Petroleum (MPC - Free Report) closed at $85.68, marking a +1.24% move from the previous day. This change lagged the S&P 500's 3.06% gain on the day. Elsewhere, the Dow gained 2.68%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the refiner had lost 14.93% over the past month, lagging the Oils-Energy sector's loss of 12.66% and the S&P 500's loss of 4.31% in that time.
Investors will be hoping for strength from Marathon Petroleum as it approaches its next earnings release, which is expected to be August 2, 2022. The company is expected to report EPS of $4.98, up 643.28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $31.41 billion, up 5.31% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.72 per share and revenue of $131.8 billion, which would represent changes of +460% and +8.99%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Marathon Petroleum. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 25.51% higher. Marathon Petroleum is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Marathon Petroleum is currently trading at a Forward P/E ratio of 6.17. Its industry sports an average Forward P/E of 8.55, so we one might conclude that Marathon Petroleum is trading at a discount comparatively.
Investors should also note that MPC has a PEG ratio of 0.31 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 0.6 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 13, which puts it in the top 6% 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.
To follow MPC in the coming trading sessions, be sure to utilize Zacks.com.