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Is Marathon Petroleum (MPC) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Marathon Petroleum (MPC - Free Report) . MPC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We also note that MPC holds a PEG ratio of 0.28. 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. MPC's PEG compares to its industry's average PEG of 0.70. Within the past year, MPC's PEG has been as high as 3.88 and as low as 0.26, with a median of 0.61.
Another valuation metric that we should highlight is MPC's P/B ratio of 1.50. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.88. Over the past 12 months, MPC's P/B has been as high as 2.03 and as low as 1.02, with a median of 1.41.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MPC has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.31.
Finally, investors will want to recognize that MPC has a P/CF ratio of 4.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MPC's current P/CF looks attractive when compared to its industry's average P/CF of 4.62. MPC's P/CF has been as high as 4.93 and as low as 2.96, with a median of 3.56, all within the past year.
Investors could also keep in mind Valero Energy (VLO - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Valero Energy currently holds a Forward P/E ratio of 5.49, and its PEG ratio is 0.92. In comparison, its industry sports average P/E and PEG ratios of 5.52 and 0.70.
Over the last 12 months, VLO's P/E has been as high as 57.89, as low as 4.97, with a median of 11.66, and its PEG ratio has been as high as 12.91, as low as 0.83, with a median of 2.01.
Furthermore, Valero Energy holds a P/B ratio of 1.90 and its industry's price-to-book ratio is 1.88. VLO's P/B has been as high as 2.90, as low as 1.38, with a median of 1.82 over the past 12 months.
These are only a few of the key metrics included in Marathon Petroleum and Valero Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MPC and VLO look like an impressive value stock at the moment.
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Is Marathon Petroleum (MPC) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Marathon Petroleum (MPC - Free Report) . MPC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We also note that MPC holds a PEG ratio of 0.28. 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. MPC's PEG compares to its industry's average PEG of 0.70. Within the past year, MPC's PEG has been as high as 3.88 and as low as 0.26, with a median of 0.61.
Another valuation metric that we should highlight is MPC's P/B ratio of 1.50. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.88. Over the past 12 months, MPC's P/B has been as high as 2.03 and as low as 1.02, with a median of 1.41.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MPC has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.31.
Finally, investors will want to recognize that MPC has a P/CF ratio of 4.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MPC's current P/CF looks attractive when compared to its industry's average P/CF of 4.62. MPC's P/CF has been as high as 4.93 and as low as 2.96, with a median of 3.56, all within the past year.
Investors could also keep in mind Valero Energy (VLO - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Valero Energy currently holds a Forward P/E ratio of 5.49, and its PEG ratio is 0.92. In comparison, its industry sports average P/E and PEG ratios of 5.52 and 0.70.
Over the last 12 months, VLO's P/E has been as high as 57.89, as low as 4.97, with a median of 11.66, and its PEG ratio has been as high as 12.91, as low as 0.83, with a median of 2.01.
Furthermore, Valero Energy holds a P/B ratio of 1.90 and its industry's price-to-book ratio is 1.88. VLO's P/B has been as high as 2.90, as low as 1.38, with a median of 1.82 over the past 12 months.
These are only a few of the key metrics included in Marathon Petroleum and Valero Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MPC and VLO look like an impressive value stock at the moment.