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Marathon Petroleum (MPC) Gains As Market Dips: What You Should Know

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Marathon Petroleum (MPC - Free Report) closed at $123.23 in the latest trading session, marking a +1.58% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 10.92%.

Heading into today, shares of the refiner had gained 5.9% over the past month, outpacing the Oils-Energy sector's gain of 5.16% and the S&P 500's gain of 2.18% in that time.

Wall Street will be looking for positivity from Marathon Petroleum as it approaches its next earnings report date. This is expected to be January 31, 2023. On that day, Marathon Petroleum is projected to report earnings of $5.66 per share, which would represent year-over-year growth of 335.38%. Our most recent consensus estimate is calling for quarterly revenue of $32.2 billion, down 9.56% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Marathon Petroleum. These recent revisions tend to reflect the evolving nature of short-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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.29% higher. Marathon Petroleum is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Marathon Petroleum currently has a Forward P/E ratio of 7.62. This valuation marks a discount compared to its industry's average Forward P/E of 8.18.

Meanwhile, MPC's PEG ratio is currently 0.26. 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. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.85 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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