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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 $126.88, marking a +0.92% move from the previous day. This move lagged the S&P 500's daily gain of 1.19%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 0.29%.
Prior to today's trading, shares of the refiner had gained 9.21% over the past month. This has outpaced the Oils-Energy sector's gain of 5.68% and the S&P 500's gain of 4.06% 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. In that report, analysts expect Marathon Petroleum to post earnings of $5.74 per share. This would mark year-over-year growth of 341.54%. Meanwhile, our latest consensus estimate is calling for revenue of $32.2 billion, down 9.56% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Marathon Petroleum. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 11.78% higher. Marathon Petroleum is currently a Zacks Rank #3 (Hold).
In terms of valuation, Marathon Petroleum is currently trading at a Forward P/E ratio of 7.94. Its industry sports an average Forward P/E of 8.45, so we one might conclude that Marathon Petroleum is trading at a discount comparatively.
We can also see that MPC currently has a PEG ratio of 0.27. 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 0.81 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.