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Should Value Investors Buy Marathon Petroleum (MPC) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Marathon Petroleum (MPC - Free Report) . MPC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that MPC holds a PEG ratio of 0.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MPC's PEG compares to its industry's average PEG of 0.65. MPC's PEG has been as high as 3.87 and as low as 0.25, with a median of 0.58, all within the past year.
Investors should also recognize that MPC has a P/B ratio of 1.67. The P/B ratio is used to compare a stock's market value with 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 1.97. MPC's P/B has been as high as 2.03 and as low as 1.06, with a median of 1.47, over the past year.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Phillips 66 (PSX - Free Report) . PSX is a # 2 (Buy) stock with a Value score of A.
Shares of Phillips 66 currently holds a Forward P/E ratio of 7.93, and its PEG ratio is 0.65. In comparison, its industry sports average P/E and PEG ratios of 5.10 and 0.65.
Over the last 12 months, PSX's P/E has been as high as 19.08, as low as 5.86, with a median of 10.31, and its PEG ratio has been as high as 2.40, as low as 0.48, with a median of 0.63.
Phillips 66 sports a P/B ratio of 1.91 as well; this compares to its industry's price-to-book ratio of 1.97. In the past 52 weeks, PSX's P/B has been as high as 2.40, as low as 1.45, with a median of 1.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Marathon Petroleum and Phillips 66 are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MPC and PSX feels like a great value stock at the moment.
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Should Value Investors Buy Marathon Petroleum (MPC) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Marathon Petroleum (MPC - Free Report) . MPC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that MPC holds a PEG ratio of 0.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MPC's PEG compares to its industry's average PEG of 0.65. MPC's PEG has been as high as 3.87 and as low as 0.25, with a median of 0.58, all within the past year.
Investors should also recognize that MPC has a P/B ratio of 1.67. The P/B ratio is used to compare a stock's market value with 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 1.97. MPC's P/B has been as high as 2.03 and as low as 1.06, with a median of 1.47, over the past year.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Phillips 66 (PSX - Free Report) . PSX is a # 2 (Buy) stock with a Value score of A.
Shares of Phillips 66 currently holds a Forward P/E ratio of 7.93, and its PEG ratio is 0.65. In comparison, its industry sports average P/E and PEG ratios of 5.10 and 0.65.
Over the last 12 months, PSX's P/E has been as high as 19.08, as low as 5.86, with a median of 10.31, and its PEG ratio has been as high as 2.40, as low as 0.48, with a median of 0.63.
Phillips 66 sports a P/B ratio of 1.91 as well; this compares to its industry's price-to-book ratio of 1.97. In the past 52 weeks, PSX's P/B has been as high as 2.40, as low as 1.45, with a median of 1.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Marathon Petroleum and Phillips 66 are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MPC and PSX feels like a great value stock at the moment.